CPC sells 850,000ha Nockatunga Station as portfolio divestment begins

The A$50m asset is the first to be broken off from the company’s wider portfolio, which is still subject to a sale process.

Consolidated Pastoral Company has sold Nockatunga Station in southwest Queensland, while the remainder of the Terra Firma-owned company’s portfolio remains for sale.

The property has been sold to Cleveland Agriculture, owned by Malcolm Harris. The 852,306-hectare Nockatunga adjoins one of his existing properties, and he has interests in cattle and cropping properties around Australia.

CPC declined to disclose the sale price but estimates place the transaction at around A$50 million ($35.4 million; €30.6 million).

Nockatunga was acquired by CPC in 1990 and was used by the company to finish bullocks from its Isis Downs, Mimong and Northern Territory stations.

The company termed it a ‘non-core’ asset despite it being widely regarded as one of Queensland’s best bullock-finishing properties. CPC was willing to sell as it retains other properties in the portfolio capable of finishing bulls, Agri Investor understands.

The sale to Cleveland Agriculture includes cattle, plant and equipment, but CPC declined to disclose the quantities included. The property could turn off 10,000-12,000 feeder steers or ox with average capacity levels of around 22,000 “in a good year”, according to CPC’s website.

Market observers have speculated that the sale of Nockatunga could indicate a break-up of the rest of CPC’s on-sale portfolio, but CPC chief executive Troy Setter said the sale “has always been and continues to be for the business as a whole or in parts” and that it remained attractive to buyers on both counts.

“While there have been some challenging conditions in some areas of Australia, CPC’s geographically diverse portfolio positions the business well in the current market and season. The business continues to perform well, benefiting from investments in properties and genetics, as well as our Indonesian supply chain and strong demand dynamics for beef in Asia and around the globe,” Setter said.

The CPC portfolio sale process, which started early this year, is being managed by Goldman Sachs and Knight Frank.