Recent rainfall is expected to underpin buyer interest in Longreach cattle property Vergemont, which has been listed for sale through CBRE and Western Livestock.
With over 150mm of rain since June, CBRE selling agent Geoff Warriner said the vendors had chosen the perfect time to seek interest in the 352,590 hectare property
Past owners of Vergemont have included NAPCO and beef industry figures such as John Logan. Mr Warriner said each new owner has made their mark on the property, with development work ranging from clearing and improvement of Gidyee scrub, to significant fencing and road improvements.
The current owners have continued this trend building dams, new yards and other major property improvements including nine successful bores drilled in the past few years to further mitigate the risk of drought
With over 200,000 hectares currently developed for stock, and ample scope for further improvement to increase carrying capacity, Vergemont is currently rated to hold up to 10,000 head of cattle.
Land types are predominantly Gidgea scrub and soft Mulga to Channel flats associated with Vergemont Creek.
Mr Warriner said the property represented value to producers looking for a 10,000 head plus operation, with quality cleared and improved Gidyea land types backed by productive channels and associated alluvial flats.
The benefits of these land types on the property were twofold – channel flood outs could occur with rainfall many kilometres to the north, and the Mulga on the property provided consistent feed.
He forecast that the property’s size and versatility of production types would generate a significant level of buyer interest.
“Vergemont can be utilised for both fattening and breeding, with the Vergemont channel systems regarded as some of the best finishing pastures in Western Queensland,” Mr Warriner said.
“The ability to breed and grow stock in excess of 10,000 head in relatively inexpensive country types allows producers scale and security of numbers. Over the past four years, and the worst drought the region has seen in many years, Vergemont has consistently run over 4,500 head – testament to the fodder types and the quality of the operation.”
Mr Warriner noted that the highest benefits were derived from seasonal flooding thought the channels, which allowed Vergemont to enjoy green pasture when rain has not fallen on the property.
Conjunctional agent Wally Cooper of Western Livestock indicated that the timing was perfect to explore the property market, with seasonal relief and flooding comparable to the 1974 flood event, coupled with strong commodity prices through saleyards.
“Cattle prices have exploded since recent widespread rainfall events, and optimism from the market is following suit,” Mr Cooper said.
“Strong cattle prices brought on by a strong restocker market, and a falling national herd is expected to continue for some time yet. Buying property with stock included is of far greater value now than ever.”
Vergemont is being sold with approximately 2,000 head, and is being offered via an Expressions of Interest campaign closing 28 September 2016.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.