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1912
E M Bowman, Wargundy, Gulgong, 205 horses, 964 cattle, 8810 sheep1 .
2018
23 Augst 2018
Cudgegong landmark ready for the next investor
Motorists travelling from Mudgee to Dubbo along the road through Goolma would need little introduction to the property now listed for sale as "Warragundi Aggregation". It has long been a district landmark - a welcome panorama of irrigated green flats fronting the Cudgegong River, standing out like a beacon amid the surrounding pastoral landscape.
It is also a standout in terms of scale - a total area of 5798 hectares (14,329ac) in a region increasingly being carved up for lifestyle farms, with an estimated carrying capacity of 25,000 DSEs. "Warragundi Aggregation" is owned by John and Sandra Harding who are principals also of Mudgee Machinery, and are selling the property now as a step towards retirement.
It is being offered for sale on a walk-in, walk-out basis including all livestock and plant, and is expected to attract bids in a $20-$25 million range by the closing date of September 7. The aggregation has been put together progressively by the Hardings since 2008, starting with the 803ha "Warragundi"/"Warragil" section previously owned by Bob Needham.
Ten further blocks were added as they became available, the last being "Glenlea" of 829ha purchased in 2016. Rising from wide alluvial flats to lightly timbered hills, the property has an estimated 2800ha of arable country including the 90ha of river flats covered by three centre pivots.
About 830ha of the property has been pasture improved, and the owners maintain a program of establishing at least 120ha of new pasture each year, following two cereal crops. A major fertiliser program was commenced in 2012, which since 2014 alone has seen nearly $230,000 spent on pasture topdressing, plus crop fertilisers, lime and gypsum.
Average rainfall is 650mm and the property is watered by a long (14km) frontage to the Cudgegong River plus several creeks and 81 dams. A 1014 megalitre Cudgegong River irrigation licence underpins the centre pivots, which are deployed primarily to grow fodder crops for hay and silage to secure the mainstay cattle and sheep production.
Last summer the irrigation country yielded 3700 bales of hay and wrapped silage, on top of a similar harvest the year before. Thanks to this resource, the property has been able to weather the drought so far with its normal complement of 1400 Angus breeders and followers and 2500 Merino ewes.
The aggregation comes with a wealth of structural improvements, reflecting its past history of many different owners. There are 10 sets of cattle yards across the property, three of them with covered work areas, three shearing sheds and sets of sheep yards, 13 machinery sheds, eight hay sheds and 13 silos.
The main "Warragundi" homestead is a large, recently renovated double brick dwelling set in two acres of landscaped gardens overlooking the river, with outdoor entertaining area and in-ground pool. Other houses include the century-old "Ben Buckley" stone homestead of seven bedrooms, the large weatherboard "Bindah" homestead and several cottages.
CREDIT: Peter Austin2
2019
1 April 2019
Hanwha buys Warragundi aggregation
Giant South Korean conglomerate Hanwha Group has bought the Warragundi mixed-farming aggregation in NSW's Mudgee region from local farmers, John and Sandra Harding for about $25 million.
Hanwha, one of South Korea's oldest corporations, will take over the landmark Mudgee property fronting the Cudgegong River as the Hardings now retire to concentrate on horse breeding and their Mudgee Machinery business after working on and improving the property since 2008.
Hanwha has interests in financial services, chemicals, solar energy, construction and aerospace to name just some of its activities. Last year it generated annual revenues of $US61 billion ($86 billion) with its assets worth a whopping $US181 billion.
In Australia, Hanwha's activities are focused on supplying solar panels to the renewable energy sector. Last year its Q CELLS accounted for one in 10 solar panels installed in homes and commercial buildings across Australia. While Hanwha has proposed a solar project at Warragundi, it will continue to operate the 5800-hectare aggregation as mixed-farming enterprise for cattle, sheep and fodder crops. Warragundi was sold with a 1014-megalitre Cudgegong River water licence.
The aggregation has an average carrying capacity 1400 breeders plus 2500 Merino ewes or 25,000 DSE (dry sheep equivalent).
CBRE's Richard Royle and Logical Livestock's Simon McKittrick jointly negotiated the sale of the Warragundi Aggregation. Mr Royle said the buyers intended to operate the farm in its current structure and will retain the existing staff. The transaction has been approved by the Foreign Investment Review Board.
"I believe the buyers are looking forward to getting to know the region further and working with local businesses. They were attracted to the region for its diversity in agriculture, wine and growing tourism," Mr Royle said.
"Buying a farm, especially in a foreign country, has its complexities but by purchasing the aggregation as a going concern will ensure they can operate commercially while applying their own strategies as they progress."
Mr Royle said the sale price was in line with agent and vendor price guide during the marketing campaign, which was circa $20 million to $25 million.
"The sale price reflects the strong rural market in NSW despite the dry conditions," he said.
Hanwha's history dates back to 1952 following the separation of Korea after World War II, which left South Korea in economic ruin.
Its forerunner was the Korea Explosives Corporation founded by Kim Chong-Hee, a pioneer in the country's explosives industry and later a diplomat.
The success of Hanwha in explosives paved the way for it to expand into other sectors like construction, where it played a major role in building the country's roads, tunnels and bridges.
Hanwha is led by Kim Seung-yeon3 .
2021
5 July 2021
Borg brothers buying Warragundi holdings
Giant South Korean conglomerate Hanwha Group has sold the blue-chip Warragundi mixed-farming aggregation in NSW's Mudgee region back to local owners, just two years after buying it from farmers John and Sandra Harding, for about $25 million.
Title deeds show the 5800-hectare property fronting the Cudgegong River at Goolma Road, in Two Mile Flat, is under contract to brothers John and Michael Borg, founders of manufacturing and recycling company Borg Group, though the deal has yet to settle.
Starting out 30 years ago as a small joinery business on the NSW Central Coast, the company now employs more than 2000 people across 11 businesses in a range of enterprises, including making melamine panels and pallets, design and construction of factories, workplace training, recycling and timber growing. The business made a net profit of $54 million from revenue of $644 million in the year to June 30, 2020, according to accounts lodged with the corporate regulator.
The Borg brothers did not respond to a request for comment. Selling agent Richard Gemmell, of Elders, declined to comment, citing the highly confidential nature of the transaction.
Based on NSW Valuer-General land value reports, which show a 22 per cent rise in rural land values in the central west over the past two years, Warragundi could now be worth about $29 million to $30 million.
One of the largest agribusiness enterprises in the region, it comprises three main holdings that support large-scale cropping, fodder production, beef cattle, sheep, wool and prime lambs.
A 1014-megalitre Cudgegong River water licence is included. The aggregation has an average carrying capacity of 1400 breeders plus 2500 merino ewes or 25,000 DSE (dry sheep equivalent).
"The Warragundi aggregation presents in magnificent order," Mr Gemmell told The Australian Financial Review when it was listed for sale last September. "It offers a magnificent opportunity for an investor looking to build out their agricultural portfolio in an area that's renowned for mixed farming production."
For Hanwha, the sale of Warragundi ends a curious dalliance with Australian farmland for one of South Korea's oldest corporations, whose primary business activities span financial services, chemicals, solar energy, construction and aerospace. Its activities in Australia include operating solar farms. In 2021, Hanwha racked up $US60.7 billion ($81.3 billion) in sales. Its assets are worth $US200 billion.
When it acquired Warragundi in early 2019, Hanwha had proposed a solar project while it continued to operate the aggregation as a mixed-farming enterprise for cattle, sheep and fodder crops.
CREDIT: Larry Schlesinger4