Local farmers have bought the substantial Carson family holding in the Balonne region of south-west Queensland, ending an almost 50-year legacy.
The 18,180.46-hectare portfolio – encompassing the properties Ooraine, Somerset and Hooloovale – went to market in February for the first time in 48 years.
JLL Agribusiness director Chris Holgar confirmed local families had bought the three properties separately, with a large number of enquiry generated during the six-week campaign.
“Interest in the portfolio was received from not only the south-west region but also further afield, with strong domestic and foreign interest.”
Mr Holgar said the campaign reflected one of the changing trends in agribusiness: that buyer interest remains strong despite rising interest rates.
He said buyers wanting to consolidate sought an increased degree of diversification in the pursuit of value and returns.
“The interesting thing we’re finding is that given where interest rates have gone – generally you would see people step out of the market and take a wait and see approach.
“But, we’re not seeing any discernible change in levels of inquiry.
“That’s probably the really interesting observation is that there are still a lot of people that are acquisitive in the market.
“We’re continuing to observe a supply/ demand imbalance and, with commodity prices still strong relative to what they were pre-COVID, it’s still very good across the board.”
Mr Holgar said the private family sector continued to strengthen within the market – as shown in the Carson family portfolio – but also in the sale of four Queensland/Northern Territory properties that S Kidman & Co owned, with which JLL was involved.
“It is encouraging to see private buyers consistently competing at levels of value that might have almost been seen as reserved for institutions,” he said.
“It’s a trend that owes its origins to the pandemic, fuelled by logistical challenges of travel, the re-weighting of portfolios and many institutions taking a wait-and-see approach to its impact.
“Complementary to that, we have had a run of favourable seasonal conditions and good commodity prices across the board, which quickly and materially changed a lot of balance sheets.”
JLL Agribusiness’s last $200 million to $300 million deals, for example, were all with private family buyers.
“While we might see some more balance in the market between the private families and institutions moving forward, it’s not going to be the two-tier dynamic where larger transactions were somewhat reserved for institutions,” Mr Holgar said.
“There are now private buyers who are actively competing in that space and often on terms that settle quicker and pose less executional risk for the vendor, for reasons such as the lack of requirement for Foreign Investment Review Board approval.”
Looking to the Carson deal, Mr Holgar said part of the portfolio’s appeal was its quality of development, presentation, diversified revenue streams and scope for change of land use through continued development of farming areas.
The sales were also good news for the nearby Dirranbandi township – roughly 600km west of Brisbane – which relies on the continued support of surrounding properties, including nearby Cubbie Station, Australia’s largest irrigated cotton property.
TIMELINE
* 1975 – The Carson family’s Ooraine Pastoral Company begins with the purchase of Ooraine Dirranbandi from the estate of Guy Elliott, which had owned it since the end of WWI.
* 1979 – The family buys Hooloovale from Randal and Blyth Lampard, who had owned it for 60 years.
* 1988 – Their portfolio expands to include Somerset (adjoining Ooraine), bought from Michael Hill.
