Silva Carbon Origination Fund secures the purchase of the 31,292ha Cobungra Station located in Victoria’s high country
The coalition were quick to condemn the sale of the large holding 31,292ha Cobungra Station located at the foothills of Mt Hotham, just 9km from Omeo, see initial reason for their objection here.
And since we ran that objection piece from the Coalition that was heavily circulated, the buyer Silva Capital through its Silva Carbon Origination Fund entity wanted to clear the air somewhat.
Silva Capital response to objection of its purchase
Further to your story about Silva Capital’s agreement to acquire Cobungra Station, we are writing to provide information about the transaction, our plans for the property and direct quotes from Silva Capital Co-Managing Director Raf Wood.
- The transaction is unconditional and has passed its regulatory conditions.
- Cobungra will remain a working cattle property. The intention is to maintain cattle production while introducing native vegetation that can provide livestock shelter, restore habitat and store carbon. Silva’s approach is to integrate native plantings with continued grazing, rather than convert the property out of agricultural production. Silva plans to establish permanent mixed native trees and shrubs on parts of the property in a way that allows cattle to graze through and among the plantings.
- Silva Capital is an Australian natural capital investment manager. The Silva Carbon Origination Fund presently has $150 million in commitments from a mix of institutional and corporate investors, of which $25 million, or 16.7%, is from an investor not listed on the ASX.
- The plantings are not commercial timber plantations and will not be grown for harvest. Dense plantation forestry across Cobungra is not proposed and is inconsistent with the mandate of the Silva Carbon Origination Fund.
Quotes from Raf Wood Silva Capital
“We’re proud to be taking on Cobungra, one of the great cattle stations of Victoria’s high country. It has supported cattle production for more than 170 years, and cattle production will remain central under Silva’s ownership.
“Our plan is to bring mixed native trees and shrubs back into the landscape in a way that works with the grazing operation. Once the plantings are established, cattle will be able to graze through and among them. The trees can provide shelter for livestock, restore native habitat and store carbon while the property continues to produce cattle.
“We understand the responsibility that comes with a property of this scale and significance. Cobungra Station matters to the Omeo district and to the people who know and work this country. We will draw on local knowledge and keep the community informed as our plans develop,” Silva Capital Co-Managing Director Raf Wood concluded.
Cobungra Station sales campaign
The sale of the 31,292ha Cobungra Station holding for an estimated $50.3 million followed a sustained marketing campaign by rural agents LAWD for previous owners, Rural Funds Group.
As a large holding farm property with a 170-year plus history it evoked a lot of interest but was outside the bank balance of 99% of inquiries.
The part of the sale that caught the attention of The Coalition was the reported portion of foreign investment backing of $25 million from Japanese power generation company JERA that is tied up in the Silva Carbon Origination Fund.
But in addition to the JERA investment, the fund has acquired over $100 million from local investors including BHP, Rio Tinto and Qantas.
As subsequent buyer of Cobungra Station, Silva Capital has alerted, the sale was scrutinised and subject to Foreign Investment Review Board approval.
Apart from additional income that the Silva Carbon Origination Fund will gain from little understood carbon credits, Cobungra Station was already a prize asset with a modern homestead as the command centre overseeing an operation capable of running 50000 head of dry sheep.
And in addition, a successful Wagyu cattle operation leased to Stone Axe Pastoral Company until March 2028.
Noting the extreme growth in rural properties over the past 5 years in particular, Cobungra Station was previously sold in 2019 for $35 million, where the sale was expressed as a freehold land holding of 6497ha, plus an agriculture alpine lease of 24,795ha.
Cobungra Station located at 1929 Great Alpine Road Omeo VIC 3898 has a combined land holding of 31,292ha expressed in information pertaining to the current sale.
