Packhorse lists trio of stations for sale

• The portfolio has been put on the market following the tragic passing of Packhorse co-founder Tom Strachan
• The trio of properties are currently operated as “grass motels”
• Expressions of Interest are invited by December 15.

Packhorse Pastoral Company (Australia) has put three large stations spanning 27,124ha on the market following the tragic passing of co-founder and “chief storyteller” Tom Strachan.

Packhorse Pastoral Company Chairman Tim Samway will consider offers from a variety of potential buyers.

“The directors of Packhorse Pastoral will consider Expressions of Interest to continue the successful regenerative work the company has been undertaking on its properties.”

Tim Samway, Packhorse Pastoral Company Chairman

“That could be with a new partner who could inject substantial new capital but equally the company would welcome interest from local landowners who may wish to acquire one property or a line of three outstanding properties and so benefit from the economies of scale,” Mr Samway said.

Packhorse’s portfolio comprises two southern Queensland properties. Situated 50km northwest of Roma Stuart’s Creek Station covers 8,344ha in the Maranoa region.  Located 200km southeast of Roma Moolan Downs Station spreads 10,029ha in the Western Downs region. The portfolio also included an 8,371-ha northern New South Wales site called Ottley Station, situated 50km west of Inverell.

Each property features staff accommodation, cattle handling facilities, reticulated livestock watering systems, and various shedding and grain storage facilities.

“Grass motel” and carbon sequestration

The properties are currently being run under a model akin to a “grass motel”. The cleared and semi-cleared land is used for grazing by one of Australia’s largest cattle producers.  Cattle are bred elsewhere but moved to these stations to capitalise on their suitability for cattle fattening.

The three properties have collectively been rated to carry approximately 13,600 Animal Equivalents (AE’s).

All the grazing lands and all the naturally timbered lands are subscribed to profitable carbon sequestration projects, instigated by the Packhorse management team and designed to provide both responsible environmental outcomes and substantial additional income.

CBRE’s David Goodfellow who is managing the sale with James Auty, says that the management of this portfolio is designed to maximise the area while capitalising on opportunities for improved carbon sequestration.

“Packhorse is a recognised leader in carbon farming initiatives and the environmental initiatives at these stations are well ahead of industry norms, with clearly established carbon baselines and management practices,” CBRE’s Mr Goodfellow said.

The currently registered projects are set to produce approximately 28,000 Australian Carbon Credit Units (ACCU) per annum within five years. At current ACCU prices of $30 to $40, the continuation of these projects is expected to provide combined additional revenue of about $840,000 to $1,120,000 per annum to the successful purchaser/s.

Expressions of interest

CBREs James Auty noted that the sale process will ensure that corporations, large private investors and local farmers would all have an opportunity to participate.

Mr Auty highlighted that properties could be acquired individually or collectively.

“We are delighted that Packhorse is willing to give both the corporate and family farming sectors equal opportunity to purchase these assets,” Mr Auty said.

Expressions of Interest are invited by December 15.