SHADY CREEK PASTORAL RUN INFORMATION MEMORANDUM. For Sale by Private Treaty

Transcription

1 SHADY CREEK PASTORAL RUN INFORMATION MEMORANDUM For Sale by Private Treaty AUGUST 2017

2 Note all property areas, figures, and calculations throughout this information memorandum are approximate in nature and are based upon figures obtained from external sources which have been relied upon without verification by the vendor or by CBRE or any of their respective officers, employees or consultants. A recipient of this information memorandum should undertake their own due diligence investigations to obtain exact figures in relation to Shady Creek Pastoral Run.

3 CONTENTS 1. INTRODUCTION LOCATION SHADY CREEK RUN OVERVIEW SALE PROCESS DISCLAIMER...24

4 CHAPTER ONE introduction Bruce Falk Real Estate and CBRE are pleased to present for sale Shady Creek Pastoral Run (Shady Creek Run), a large scale mixed agricultural enterprise situated in the tightly held and highly productive Gippsland Region of Victoria. Shady Creek Run comprises four feature lots totalling 692* hectares located approximately 1.5 hours from the Melbourne CBD. The property is currently operated as a mixed grazing and cropping (seed potatoes and horticultural) enterprise, benefited by irrigation water, three phase power and substantially developed property infrastructure. The property is also subject to two Extractive Industry Work Authorities covering approximately 250 hectares of the landholding, of which only 40 hectares is active at any one point in time, and is currently operated by Gippsland Premium Quarries (GPQ) which provides significant passive income. The surrounding area has also been earmarked as a major future supplier of Melbourne s construction sand and gravel, and Shady Creek Run occupies a significant area of the Trafalgar Sand Resource, as identified by the Gippsland Regional Growth Plan. Key features of the offering include: Four feature lots or a large scale contiguous landholding in a highly productive agricultural region, with numerous future development opportunities. Currently utilised as a breeding and fattening, seed potato and horticultural operation, Shady Creek Run is divided into 50 main paddocks that are connected via an extensively developed laneway system. Outstanding carrying capacity, underpinned by excellent soil types and a regimented pasture improvement and renovation programme. Approximately 319 megalitres of irrigation water is supplied via numerous irrigation dams and the Shady Creek, with stock water supplied via a combination of paddock dams, creek access and stock troughs. Located close to Warragul (approximately 13 radial kilometres), as well as being only approximately 1.5 hours from the Melbourne CBD via the Princes Freeway (approximately 103 radial kilometres). Benefited by excellent climatic conditions, with highly reliable annual average rainfall of 1,029 millimetres (Bureau of Meteorology Buln Buln Weather Station). High quality structural improvements, including three homesteads, large packing facility with three cool rooms (1,200 tonne capacity), administration office, numerous workshops, storage, machinery and hay sheds and two sets of cattle yards. An attractive passive income via the sand resource operated by GPQ. Shady Creek Run is being offered for sale by Private Treaty. Bruce Falk Real Estate and CBRE Agribusiness is anticipating strong interest in Shady Creek Run and as such, we strongly encourage your participation in the sale process, as outlined in Chapter 4. Note, this information memorandum must be read in full and is provided to interested parties subject to the Disclaimer per Chapter 5. Danny Thomas Regional Director CBRE Agribusiness danny.thomas@cbre.com.au Bruce Falk Bruce Falk Real Estate bruce@brucefalk.info 4 CBRE AGRIBUSINESS INFORMATION MEMORANDUM SHADY CREEK PASTORAL RUN *approx

5 SHADY CREEK PASTORAL RUN CBRE AGRIBUSINESS INFORMATION MEMORANDUM 5

6 CHAPTER TWO location Shady Creek Run is located approximately 13 radial kilometres north-east of Warragul, in the heart of the highly productive and wellregarded Gippsland Region. The surrounding area is renowned for numerous agricultural pursuits, including dairy, beef, cool climate horticulture and viticulture and forestry pursuits, amongst others. Within close proximity to the Melbourne CBD, and easily accessed via the Princes Freeway, the property enjoys extensive frontage to the Shady Creek and is accessed via Thurlows Road, Araluen Road and Parkins Road. Shady Creek Run benefits from being the following distances from: Warragul: Approximately 13 radial kilometres. Traralgon: Approximately 39 radial kilometres. Pakenham: Approximately 52 radial kilometres. Dandenong: Approximately 76 radial kilometres. Frankston: Approximately 83 radial kilometres. Melbourne CBD: Approximately 112 radial kilometres. Geelong: Approximately 150 radial kilometres. The following maps detail Shady Creek Run s location from both a national and state perspective. 6 CBRE AGRIBUSINESS INFORMATION MEMORANDUM SHADY CREEK PASTORAL RUN *approx

7 SHADY CREEK PASTORAL RUN - LOCATION OVERVIEW MELBOURNE MO NA SH FW Y DANDENONG PAKENHAM GEELONG FRANKSTON PRINCES SHADY CREEK PASTORAL RUN FWY WARRAGUL TRARALGON SO UT H GI PP SL AN D HW B AS S HW Y Y NT QLD WA SA NSW ACT VICTORIA SHADY CREEK PASTORAL RUN TAS LEGEND Property Boundary Highway SH A DY C R E E K PA STO R A L RUN CB RE AG RI B U SI NESS I NFORMATI ON MEM ORA NDU M 7

8 CHAPTER THREE shady creek run overview Shady Creek Run comprises four feature lots or a contiguous 692* hectare landholding, currently operated as a mixed grazing and cropping (seed potatoes and horticultural) enterprise, benefited by irrigation water, three phase power and substantially developed property infrastructure. Additional property information is as follows: Property Detail Description Address 59 Parkins Road, Shady Creek VIC 3821 Local Authority Zoning Services Baw Baw Shire Council Farming Zone. Electricity, domestic water via rainwater catchment tanks, gas (bottled), telephone, internet 8 CBRE AGRIBUSINESS INFORMATION MEMORANDUM SHADY CREEK PASTORAL RUN *approx

9 SHADY CREEK PASTORAL RUN - PROPERTY OVERVIEW Old Sale Rd BOONOOLOO HOMESTEAD HA Araluen Rd Yarragon Shady Creek Rd Thurlows Rd Shady Creek ARALUEN HA BOONOOLOO SOUTH HA Yarragon Shady Creek Rd KOORAGULLA HA Darnum Shady Creek Rd LEGEND Property Boundary Watercourse Waterbody SHADY CREEK PASTORAL RUN CBRE AGRIBUSINESS INFORMATION MEMORANDUM 9

10 CHAPTER THREE shady creek run overview cont. Shady Creek Run is available for sale in four feature lots as described below: Kooragulla Area hectares Water Entitlement 67.2 megalitre licence Structures Accommodation at Kooragulla includes The Kooragulla Homestead comprising a large federation homestead in original condition featuring four bedrooms and a manager s residence featuring three bedrooms. Operational infrastructure includes an administration office, propagation polyhouse, packing facility, workshop, machinery shed, three coolrooms with 1,200 tonne capacity, two storage sheds and cattle yards. 10 CBRE AGRIBUSINESS INFORMATION MEMORANDUM SHADY CREEK PASTORAL RUN *approx

11 KOORAGULLA - PROPERTY OVERVIEW Old Sale Rd Araluen Rd Yarragon Shady Creek Rd Thurlows Rd Shady Creek Darnum Shady Creek Rd Yarragon Shady Creek Rd LEGEND Property Boundary Watercourse Waterbody Neighbouring Property Homestead Manager s Residence Packing Facility Machinery Shed Admin Office Storage Shed Cattle Yard SHADY CREEK PASTORAL RUN CBRE AGRIBUSINESS INFORMATION MEMORANDUM 11 Propagation Polyhouse Workshop

12 CHAPTER THREE shady creek run overview cont. Boonooloo South Area Water Entitlement Structures hectares megalitre licence Operational infrastructure includes a hay shed and cattle yards, main irrigation dam and underground irrigation mains. 12 CBRE AGRIBUSINESS INFORMATION MEMORANDUM SHADY CREEK PASTORAL RUN *approx

13 BOONOOLOO SOUTH - PROPERTY OVERVIEW Old Sale Rd Araluen Rd Yarragon Shady Creek Rd Thurlows Rd Shady Creek Darnum Shady Creek Rd Yarragon Shady Creek Rd LEGEND Property Boundary Watercourse Waterbody Neighbouring Property Cattle Yard Hay Shed SHADY CREEK PASTORAL RUN CBRE AGRIBUSINESS INFORMATION MEMORANDUM 13

14 CHAPTER THREE shady creek run overview cont. Boonooloo Homestead Area Water Entitlement Structures 109 hectares 44.2 megalitre licence Accommodation includes a large homestead of brick construction comprising four bedrooms set within established gardens. Operational infrastructure includes a workshop and hayshed. 14 CBRE AGRIBUSINESS INFORMATION MEMORANDUM SHADY CREEK PASTORAL RUN *approx

15 BOONOOLOO HOMESTEAD - PROPERTY OVERVIEW Old Sale Rd Araluen Rd Yarragon Shady Creek Rd Thurlows Rd Shady Creek Darnum Shady Creek Rd Yarragon Shady Creek Rd LEGEND Property Boundary Watercourse Waterbody Neighbouring Property Homestead Workshop Hay Shed SHADY CREEK PASTORAL RUN CBRE AGRIBUSINESS INFORMATION MEMORANDUM 15

16 CHAPTER THREE shady creek run overview cont. Araluen Area Water Entitlement Lease hectares 98 megalitre surface water right Araluen is currently subject to two Extractive Industry Work Authorities covering approximately 250 hectares of the landholding of which 40 hectares is operational at any given point in time. Is currently operated by Gippsland Premium Quarries. An annual base rental is paid, with a further royalty payment calculated and paid on tonnage extracted. 16 CBRE AGRIBUSINESS INFORMATION MEMORANDUM SHADY CREEK PASTORAL RUN *approx

17 ARALUEN - PROPERTY OVERVIEW Old Sale Rd Araluen Rd Yarragon Shady Creek Rd Thurlows Rd Shady Creek Darnum Shady Creek Rd Yarragon Shady Creek Rd LEGEND Property Boundary Watercourse Waterbody Neighbouring Property Current Works Approval Licence SHADY CREEK PASTORAL RUN CBRE AGRIBUSINESS INFORMATION MEMORANDUM 17

18 CHAPTER THREE shady creek run overview cont. SCOPE OF CURRENT ENTERPRISE Grazing Enterprise Shady Creek Run has been held by the current owners for over 30 years and during this time it has been operated primarily as a high quality cattle fattening operation. Historically, the property targeted the Jap Ox market, as well as younger cattle for domestic and export markets. Currently, the majority of the cattle are agistment for dairy exporters and local processors. The property s strategic location is further underpinned by its ease of access to the Victorian Livestock Exchange in Pakenham, as well as numerous other Gippsland livestock selling centres, dairy processing facilities at Darnum, Leongatha, Longwarry, Korumburra, Dandenong and Maffra, as well as beef processing facilities at Pakenham, Moe, Warragul, Wonthaggi, Cranbourne and Melbourne. Certified Seed Potatoes In the last decade a certified seed potato enterprise was transferred to Shady Creek Run, a highly specialised horticultural enterprise. Currently, approximately 40 hectares of the property is utilised for the production of certified seed potatoes for domestic and international markets, however historically up to 120 hectares has been utilised at any one point in time for this pursuit. Shady Creek Run is also situated in the declared Potato Plant Protection District (Warragul / Neerim), which highlights the importance of biosecurity for the seed potato industry. Extractive Industry Works The property is also subject to two Extractive Industry Work Authorities covering approximately 250 hectares of the landholding, of which only 40 hectares is operational at any given point in time, and currently operated by Gippsland Premium Quarries (GPQ) which provides significant passive income via an annual base rental paid, with a further royalty payment calculated and paid on tonnage extracted. The surrounding area has also been earmarked as a major future supplier of Melbourne s construction sand and gravel, and Shady Creek Run occupies a significant area of the Trafalgar Sand Resource, as identified by the Gippsland Regional Growth Plan. 18 CBRE AGRIBUSINESS INFORMATION MEMORANDUM SHADY CREEK PASTORAL RUN *approx

19 CLIMATE AND RAINFALL The Bureau of Meteorology (Buln Buln) has recorded an average annual rainfall of 1,029.4 millimetres from 1922 to Climate statistics recorded at the Buln Buln weather station indicate an average high of 25.5 degrees Celsius in summer and an average low of 5.0 degrees Celsius in winter. This information is diagrammatically represented below. Temperature (!" Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rainfall (mm) PASTURES, SOIL TYPES AND TOPOGRAPHY Parts of the southern portion of Shady Creek Run have been utilised for high quality grazing for over a century, whilst the remainder of the property has been progressively cleared in order to accommodate further grazing pursuits. The current owners acquired the property in the 1980s, and undertook a substantial pasture renovation and improvement programme, transforming the property to the high quality enterprise it is today. Paddocks were extensively improved and sown to grass species conducive to high quality grazing enterprises, whilst trees were planted in certain areas to provide shelterbelts and protection for livestock. More recently, the introduction of the certified seed potato operation has again provided an opportunity for the sowing of new pastures. The western portion of the property running parallel to the Shady Creek has high quality creek flats with excellent soil types. The property gradually rises from the Shady Creek and extends out into a number of large flat or gently undulating paddocks, with soil types comprising grey sandy loams over a clay base. Mean Rain (mm) Mean Max. ( C) Mean Min. ( C) SHADY CREEK PASTORAL RUN CBRE AGRIBUSINESS INFORMATION MEMORANDUM 19

20 CHAPTER THREE shady creek run overview cont. PADDOCKS, LANEWAYS AND FENCING Shady Creek Run is divided into fifty main paddocks, as well as a number of smaller holding paddocks. Fencing comprises a mixture of six strand plain wire or barbwire on treated pine posts, whilst there are also some areas of temporary electric fencing. Almost every paddock can be accessed from the extensively developed laneway system connecting the property. The following map illustrates the layout of the paddocks, as well as the laneway system and fencing network. STOCK WATER Stock water is supplied via a combination of paddock dams located throughout the central and northern portions of the property, as well as access to the Shady Creek, whilst on the southern portion of the property stock water is supplied via a combination of paddock dams, Shady Creek access and gravity fed stock troughs located in each paddock. IRRIGATION AND WATER SUPPLY INFRASTRUCTURE Shady Creek Run comprises a number of licenced irrigation dams, of which the main is licenced for 182* megalitres and is connected to multiple 150 millimetre underground main lines, as well as a holding tank which gravity feeds to troughs located in the southern portion of the property. A number of smaller licenced irrigation dams, as well as a Shady Creek irrigation licence add a further 137* megalitres, bring the total amount of irrigation water on the property to 319* megalitres. To date, irrigation has been utilised solely for the certified seed potato production operation, and going forward could suit a number of agricultural pursuits, including horticulture, viticulture, irrigated pasture, intensive animal husbandry and extractive industry works. 20 CBRE AGRIBUSINESS INFORMATION MEMORANDUM SHADY CREEK PASTORAL RUN *approx

21 SHADY CREEK PASTORAL RUN - WATER INFRASTRUCTURE Old Sale Rd BOONOOLOO HOMESTEAD HA Araluen Rd Yarragon Shady Creek Rd Thurlows Rd Shady Creek ARALUEN HA BOONOOLOO SOUTH HA Yarragon Shady Creek Rd KOORAGULLA HA Darnum Shady Creek Rd LEGEND Property Boundary Watercourse Waterbody Creek Licence Licenced Dam Watercourse SHADY CREEK PASTORAL RUN CBRE AGRIBUSINESS INFORMATION MEMORANDUM 21

22 CHAPTER FOUR sale process Bruce Falk Real Estate and CBRE is pleased to offer Shady Creek Run for sale by Private Treaty. For further information, or to obtain a copy of the Contract of Sale and Section 32 Vendor s Statement, please do not hesitate to contact the below personnel. Danny Thomas Regional Director CBRE Agribusiness danny.thomas@cbre.com.au Bruce Falk Bruce Falk Real Estate bruce@brucefalk.info Recipients of this information memorandum are reminded that it should be read subject to the Disclaimer per Chapter CBRE AGRIBUSINESS INFORMATION MEMORANDUM SHADY CREEK PASTORAL RUN *approx

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24 CHAPTER FIVE disclaimer This Information Memorandum has been prepared by CBRE (V) Pty Ltd (ABN ). The information in this Information Memorandum and any other written or verbal information given in respect of the Property referred to in this Information Memorandum ( the Information ) is provided to you ( the Recipient ) on the following conditions: 1. The Property is to be sold on an as is / where is condition (that is, in its present condition and subject to all legal and physical defects). 2. No assurance, representation, warranty or guarantee (express or implied) is given by the Vendor, CBRE or any of their respective officers, employees or consultants (collectively referred to as the Parties) or any other person or entity that the Information, whether or not in writing, is complete, accurate or balanced, or has or will be audited or independently verified, or that reasonable care has been or will be taken in compiling, preparing and furnishing the Information. 3. The Information does not constitute, and should not be considered as, a recommendation in relation to the purchase of the Property or any other matter, or as a solicitation or offer to sell the Property or a contract of sale for the Property. 4. The Information shall not constitute an assurance, representation, warranty or guarantee that there has been no change in the Property or in the matters referred to in the Information since the date at which the Information is expressed to be stated. 5. The figures and calculations contained in the Information are approximate and are based upon figures obtained from external sources which have been relied upon without verification by the Vendor or by CBRE or any of their respective officers, employees or consultants. As previously highlighted, a Recipient should undertake their own due diligence investigations to obtain exact figures relating to the Property. 6. The Information contains statements which are in the nature of forward-looking statements. To the maximum extent permitted by law, no representation or warranty is given and nothing in the Information or any other information made available before or during the expression of interest process is or should be relied upon as a promise or representation as to the condition or future operations of the business and / or assets being sold. Statements, assumptions or other information in the Information which relate to future matters or any other information made available before or during the expression of interest process as to future matters may prove to be incorrect. The operation of the business and / or assets has been, is and will be influenced by a large number of factors. Each Recipient should make its own investigations and rely on its own inquiries regarding assumptions, uncertainties, variables, contingencies, risks and other factors which may affect the operations of the business and / or assets being sold. 7. None of the Parties assume any obligation to the Recipient to provide additional Information or updated Information or to correct any inaccuracies in the Information which may become apparent. 8. The Information should not be relied upon in any way by the Recipient or its related entities, their respective officers, employees, agents, advisors, shareholders and associates (collectively the Recipient Parties). The Recipient Parties should satisfy themselves as to the accuracy and completeness of the Information through inspections, surveys, enquiries and searches by their own independent consultants. 9. The Information does not purport to contain all of the details which the Recipient would require to submit an expression of interest for the Property. All Recipients should seek independent legal and financial advice. The Parties will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information a Recipient relies upon that is contained in the Information or any other marketing material. 24 CBRE AGRIBUSINESS INFORMATION MEMORANDUM SHADY CREEK PASTORAL RUN *approx

25 10. None of the Parties make any representations or warranties with respect to the continuation or enforceability of any licence, lease, supply, service, consultancy, certification, standard or other agreement referred to in the Information following completion of the sale of the Property. 11. Not all fixtures and fittings on the Property may be available for sale and the Vendor and CBRE reserve the right to remove any item on the Property from sale at any time. 12. None of the Parties make any representations or warranties with respect to fixtures, fittings, plant and equipment on the Property. 13. None of the Parties make any representations or warranties with respect to the legality of the current use of the Property or the ability of any purchaser to redevelop the Property. 14. The Information does not and will not form part of any contract of sale for the Property. If any Recipient Party makes an offer or signs a contract for the Property, that Recipient Party represents that it is not relying on the Information supplied by any of the Parties (unless otherwise agreed in a written contract with the Vendor). The only information, representations and warranties upon which the Recipient Parties will be entitled to rely will be as expressly set out in such a contract. 15. Recipients will be responsible for meeting their own costs of participating in the sale process for the Property. The Parties shall not be liable to compensate any Recipient Parties for any costs or expenses incurred in reviewing, investigating or analysing any information, whether that information is contained in the Information or otherwise. 16. None of the Parties are liable to compensate or reimburse the Recipient Parties for any liabilities, costs or expenses incurred in connection with the sale of the Property. 17. Except as may be expressly provided in any agreement in writing between the Parties and the Recipient, the Recipient acknowledges and agrees (for itself and the other Recipient Parties) that to the maximum extent permitted by law, all terms, conditions, warranties and statements, whether express, implied, written, oral, collateral, statutory or otherwise, relating to the Information and the sale of the Property are excluded, and each of the Parties disclaim all liability for any loss and damage (whether foreseeable or not) suffered by any person acting on any of the Information whether the loss or damage arises in connection with any negligence, default or lack of care on the part of the Parties, any misrepresentation or any other cause by reason of or in connection with the provision of the Information or by the purported reliance thereon by any of the Recipient Parties. 18. The Information is confidential. The Information must not be reproduced, transmitted or otherwise made available or communicated to any person other than the Recipient Parties without the prior written approval of the Vendors. The Recipients acknowledge and agree that upon deciding that they do not wish to proceed with the purchase of the Property, or at the request of the Parties, they will immediately return the Information together with any reproduction thereof. 19. To the extent that any of the above paragraphs may be construed as being a contravention of any law of the State of Victoria or the Commonwealth, such paragraphs should be read down, severed or both as the case may require and the remaining paragraphs shall continue to have full force and effect. 20. This disclaimer is additional to the contract and survives execution of the contract. SHADY CREEK PASTORAL RUN CBRE AGRIBUSINESS INFORMATION MEMORANDUM 25

26 For further information please contact the below personnel. Danny Thomas Regional Director CBRE Agribusiness Bruce Falk Bruce Falk Real Estate *approx