Victoria’s Cobungra Station, home to Wagyu beef, up for grabs
ASX-listed fund manager Rural Funds Group has put on the market one of Victoria’s largest cattle stations. Cobungra Station spreads over more than 31,000 hectares at the foot of Mount Hotham, and is home to prominent Wagyu producer Stone Axe Pastoral Company.
Almost 6500 hectares of its land is owned as freehold, and the remainder is held through an alpine lease. It’s expected to fetch in the mid $50 million range.
With a grazing history extending back 170 years, it’s one of several properties that Rural Funds leases to premium Wagyu producer Stone Axe Company, which itself is backed by private equity investor Roc Partners.
Acquired for $35 million, the property has been put up for grabs by the fund manager as it forges ahead with its strategy of divesting non-core asset sales and focuses on development plans that include converting a farm in central Queensland into macadamia orchards.
“Cobungra Station was purchased in March 2019 and was leased to Stone Axe Pastoral Company for a 10-year lease term, which is in place until February 2029 with options to extend,” said Rural Funds’ chief operating officer, Tim Sheridan.
“The existing lease gives a potential buyer a stable income stream from the property for a minimum of over three years, which can be rare in agriculture.”
Since taking it over in 2019, Rural Funds has invested significantly in Cobungra through pasture development, infrastructure and water systems, Sheridan said.
“A large portion of the capital development of Cobungra Station has been focused on improving the productivity of the grazing operation via improving pastures, fencing and livestock water.”
Rural Funds has a $2 billion portfolio of properties whose uses range from cattle grazing to high-value nut orchards, cropping and vineyards. Income from its cattle station holdings is forecast to account for 36 per cent of Rural Funds’ revenue in the coming year. Cobungra is held on its books at almost $53 million.
The property is nine kilometres from the regional centre of Omeo and includes a five-bedroom home with views across the Cobungra Valley.
It is also just 11 kilometres from Hotham Airport, putting it within easy reach of major ski fields and making it a potential base for those seeking to combine investment performance with lifestyle pursuits, according to LAWD’s Danny Thomas, who is brokering the property with colleagues Elizabeth Doyle and Patrick Kerr.
“Cobungra Station offers an exceptional combination of location, scale, productivity, presentation, and a secure income through a premium Wagyu tenant, making it particularly compelling for high-net-worth investors or other agriculture fund managers,” Thomas said.
“Whether it’s purchased as a cornerstone agricultural investment or as a private rural base with income security, Cobungra Station is a truly exceptional opportunity that balances commercial performance with lifestyle amenity.”
