For the second time in as many months, a major Australian pastoral holding with links to the once-thriving tobacco industry has hit the market.
The latest offering, “Rushy Lagoon” in Tasmania, comes just weeks after the listing of Twynam Agricultural Group’s Jemalong Station at Forbes (previewed in The Land on February 8).
Both were once part of the Naroo Pastoral Company stable of more than 20 properties across Australia, put together in the 1960s by cigarette maker, British Tobacco (Australia) – now Coca-Cola Amatil.
Keen to diversify its interests away from tobacco, as health concerns about smoking intensified, the company embarked on a program of pastoral investments, beginning in 1961 with “Glenrock” in the Upper Hunter.
“Jemalong” was acquired later that year, followed by “Mungadal” at Hay in 1963, and “Rushy Lagoon” – then a vast undeveloped spread of 65,000 hectares of mostly coastal swampland – shortly afterwards.
According to Peter Howard, who worked on “Rushy Lagoon” as operations manager in the 1970s, the company poured millions of dollars into drainage, pasture establishment and infrastructure.
“We aimed to develop 3000 acres of new (pasture) country every year,” said Mr Howard. “By 1975 we were running 42,000 sheep and 10,000 head of cattle, selling heavy steers into the Jap Ox market.”
But by the late 1970s, BTA was losing enthusiasm for its pastoral sideline as other investment avenues (notably the Coca-Cola franchise) beckoned, and the Naroo properties were offloaded.
And now, several owners and land resumptions later, “Rushy Lagoon” is back in play, this time as a highly developed irrigated dairying and grazing aggregation of 21,861ha (53,996ac).
The property is being marketed internationally by CBRE Agribusiness’s Peter Ryan, Jarrod Ryan and Danny Thomas, with expressions of interest (closing on April 23) likely to top $60 million.
Its scale, diversified income streams and rain-secure location should ensure a serious level of investor interest, especially coming in the wake of several other “big ticket” Tasmanian land sales.
“Rushy Lagoon” is owned by Allan Pye, an entrepreneurial potato grower from New Zealand who bought it at auction in 1997 for about $8.6 million from Tasmanian agricultural heavyweight Bert Farquhar.
Mr Farquhar, who died in 2010 aged 91, made headlines when he paid $10.1m at auction to buy “Rushy Lagoon” in 1986: it was then the highest price paid by an individual for an Australian farm.
Today “Rushy Lagoon” comprises 1000ha under centre pivot irrigation and 6699ha of arable improved pasture country, leaving a balance of open, native pasture country and green timber.
The property is situated fronting Bass Strait near Cape Portland, the north-eastern tip of Tasmania, 71 kilometres north-east of Scottsdale and 133km from Launceston.
Average rainfall is a reliable 750mm and the property is watered by frontage to the Musselroe River plus creeks, dams and troughs fed by three equipped bores.
As presently managed, the property runs a dairy herd of 4000 head (2337 cows in milk) serviced by four dairies, a Hereford and Angus beef herd of 6800 head and a Merino/Coopworth sheep flock of 5600.
Infrastructure includes a 20-stand shearing shed, four sets of cattle yards, a 1000 square metre workshop complex and 20 dwellings.