Shortly after 11am, bidding on Chudleigh Park immediately commenced at $18 million but the initial rapid fire bids of $2m stalled for a lengthy period at $24m. After private discussions with highest bidder Peter Camm, Chudleigh Park was sold to Camm Cattle Company for $28 million just after 12.30pm. (Camm Cattle Company sold NT stations La Belle and Welltree a few months ago. Apparently Peter Camm worked on Chudleigh as a ringer many years ago, and bought it for his four children to work on.)
By contrast bidding on Wrotham Park was very slow to get started, with the auctioneer knocking back Consolidated Pastoral Company’s opening offers of $35 million, then $41 million, and even $42.5 million. Eventually the auctioneer accepted Consolidated Pastoral’s bid of $43 million, but with the offer still being under the reserve, Wrotham Park was passed in, with negotiations proceeding behind closed doors. (Earlier this year Consolidated Pastoral Company was sold by the Packer family to UK-based investment company Terra Firma, with Ken Warriner, Consolidated Pastoral Company’s long-term CEO, retaining a 10% interest and managerial rights. Terra Firma’s first board meeting after the purchase of CPC, was held in late April 2009.)
The opening remarks from auctioneer John Burke, prior to both auctions, included unusual (but essential) extras on top of the standard auction terms and conditions. In particular, reference to the possibility (however slight it may be) of Great Southern shareholders taking legal action against the company which could theoretically lead to the involvement of the new owners of Wrotham Park and Chudleigh Park (i.e. new purchasers being sued to recoup the value of the cattle auctioned with the land); and it was clearly explained that the selling agents and the receivership company were indemnified from any future legal action from Great Southern shareholders. All just a formality however – nobody spends tends of millions of dollars without sound upfront research – by inspecting the possible purchase firsthand and obtaining reliable legal and financial advice on the conditions of sale etc. All genuine bidders would have done the necessary homework in the weeks leading up to the auction, and been well aware of the situation, with Great Southern being in receivership.
However, prior to both auctions, when the auctioneer asked for questions prior to opening the bidding, a ‘suit’ who stood out noticeably in a room predominated by blokes from the bush, arose from the middle of the room (theoretically identifying himself; however I doubt anyone in the room had sharp enough hearing to actually discern his name & company) and asked questions that could surely only have been intended to make other potential buyers hesitate. One could almost hear the circling crows calling in anticipation of a knock-down bargain. Prior to the Chudleigh Park auction he asked about the level of indemnity and buyer’s security (asking whether the indemnity protection for buyers was adequate). Prior to the auction of Wrotham Park, the same fellow stood up and queried the number of brands that were included in the sale of Wrotham Park (which includes the outstation of Gamboola, which has a separate brand). Both were questions that would surely have been answered in prior meetings and property inspections; if not privately, just before the auction; so it can only be presumed that these queries were deliberately asked publicly simply to plant seeds of doubt in the minds of others, directly prior to bidding.
However it was a pointless strategy, given the business experience of those who were in the room. It was standing room only, probably the best attended cattle property auction in Townsville in recent years, and probably the best attended cattle station auction further afield. It was like the who’s who of the northern cattle industry, with Bill and Barbara Scott, Ken Warriner and Sally Ford, Terra Firma representatives, Don McDonald, Peter Camm and a raft of other rural landowners from the Charters Towers to Georgetown region, plus further afield – such as Bevan Doyle from Blackall, and Eric and Lyn Slack-Smith from Richmond/Julia Creek. The room was packed.
Apparently the stock squad had also put in an appearance at the start of the auction, for reasons unknown.
All-in-all an extremely interesting 3 hours at Townsville’s Jupiters Casino, followed by lunch with some ex-Wrotham Park employees. While it is good to see continuity of land ownership, I am sure I am not alone in looking forward to the next cattle station auction here. Occasions for people interested in the bush, to get together in Townsville, are few and far between these days.
Tags: Wrotham Park Station, Pastoral companies, Chudleigh Park Station, La Belle Station, Welltree Station