THE planned sale of a northern cattle station worth more than $40 million has collapsed as a result of the suspension of live cattle exports to Indonesia.
Top-end stations worth at least $500 million are for sale. Agents claim dozens of potential deals are now in doubt and valuers are hinting at cuts in value of more than 50 per cent, reports The Australian Financial Review .
"We had a major Australian company that had completed several months' due diligence on the property – which I can't name – and they were very keen to put in their final offer, but that is now gone," Territory Rural agent Andrew Gray said.
The station is likely to be Killarney, a 1 million hectare aggregation run by Wallco International, which exports more than 70,000 cattle a year to Indonesia and other countries.
Ray White Rural's Andrew Adcock called for calm among owners and sellers. He said attempts to sell properties, such as cattle baron Sterling Buntine's Tanumbirini station, have been undermined. The property, in the Northern Territory, was expected to fetch more than $30 million.
"We have had a particular party out of the UK looking at a property but they are now hanging back, waiting to see what happens," Mr Adcock said. "The interest we have been getting from offshore has gone into the sunset."
A halt to live exports prevents owners from selling their cattle and generating cash. Without revenue the properties lose value in the same way office towers do when they have no tenants. They may also struggle to pay bank debt, raising the prospect of defaults.
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