The Inkerman sale included 3000 females, the entire 2021 calf drop and 100 Brangus bulls

A Greenvale district grazing family, possibly with partners, is understood to have paid at least $30 million for North Queensland grazing property Inkerman Station, located in the lower Burdekin.

Selling agent David Buckley from Nutrien Harcourts Queensland Rural was instructed not to disclose the buyer or the price paid, however several sources close to the deal have confirmed both the buyer and price.

The large-scale coastal freehold grazing and farming property is situated in the heart of the Burdekin Region, known for its high and reliable annual rainfall and long growing season.

Located 15 minutes from Home Hill and 75 minutes south of Townsville, the 16,665ha holding comprise 4935ha of quality black soil and 11,729ha of grazing country.

The sale included 3000 females, the entire 2021 calf drop, 100 Brangus bulls, extensive plant and equipment and around 800 tonnes of irrigated and fertilised forage and lablab silage.

Inkerman was offered for sale by expressions of interest and attracted inquiry from Queensland, New South Wales and Victoria due to its sought-after location.

Over the last three years, vendors Russell and Janelle Dobe from Bowen have aerial seeded 12,000kg of seca, omega and verano stylo as part of a major pasture improvement program. There was also substantial investment made in prickly acacia woody weed control.

With the current seasonal conditions, the country has responded, and the pastures have shown excellent growth.

Around 1200ha of farming country has been sown down to Rhodes grass pastures, offering the incoming purchaser an opportunity to continue the expansion and development of the blacksoil country.

Inkerman also boasts a number of quality improvements, including fencing which is in excellent condition.

The owners have installed a large, new set of ProWay cattle yards in the middle of the property, connecting to a new laneway system that complements the existing cattle handling facilities.

All the internal roads have been upgraded, with stock grids installed on all the major water run routes. Inkerman has new tanks and troughs and all the existing bores, as well as several new ones, have been upgraded with submersible solar pumps.

A 50ha cane farm, adjacent to one of the large lagoons on the property, is supported by a 393 megalitre water licence. Inkerman is on the edge of the Burdekin irrigated canegrowing area.

Capital appreciation       

It is interesting to note the capital appreciation of the property, which was purchased by the Dobes in October 2016 for $11.125m as a going concern, on a walk-in, walk-out basis with 2000 females and working plant.

Reasons for the dramatic difference in the current purchase price include the enormous lift in the cattle market and grazing property values since 2016, substantially larger cattle herd, strong demand for quality holdings and the excellent pastures and heavy investment in quality improvements carried out by the vendors over the past few years.

A back of the envelope analysis of where the price increase might lie is:

• Around 800 tonnes of irrigated and fertilised forage and lablab silage, plus a water licence = $1m
• 3000 females, the entire 2021 calf drop and 100 Brangus bulls = $4.5m
• Extensive plant and equipment = $1m
• On average, the 16,665 hectares @ $1235/ha to $1359/ha = $20.6m to $22.65m.

Of course, the extra value is also made up by access to cheap money, strong industry confidence and securing a ‘once in a lifetime’ opportunity.

Recent Central Queensland sales

In other recent comparative sales across the central Queensland region:

• In May, the Hatton family from Eidsvold paid $32.5m for Blackwater’s well-known Berrigurra Station. Competition was fierce for the 9285ha property, which was previously used by Emerald Agricultural College. At the time, Mark McNamee from Elders QLD/NT said the $32.5m represented fair value given the nature and potential of the property.
• In July, the Acton family’s Croydon Station sold for a reported $80m ($1340/ha) bare to Central Queensland’s Redrock Trading Co. owned by Rolleston-based John and Margaret Speed. The 59,669 hectares of growing and finishing country are located in the renowned Lotus Creek district, centrally located between Rockhampton and Mackay.