Respected industry real estate figure Clint Donovan has been appointed to oversee the expression of interest process after the recent announcement of Spendthrift in the United States that it would cease its Australian operation and sell off the assets it has built in its seven-year tenure from its base in Romsey in Victoria.
Donovan told TDN AusNZ that the nature of the sale and the preference for all assets to be sold together made it a very rare opportunity in the Australian market.
Clint Donovan and Barry Bowditch
"It is certainly a one-of-a-kind offering in the current environment, given the Australian industry. Even more importantly, the investment that Spendthrift have made in Australia with Garry Cuddy at the helm is only just starting to pay dividends," he said.
"This is a very, very rare opportunity to get something in its infancy that is about to go boom, the way things are looking."
In terms of the physical assets, at the centre of the offering is the 600-acre farm at Romsey, the former Yallambee Stud site which the Spendthrift Australia team have invested significantly since its purchase in 2015.
"This is a very, very rare opportunity to get something in its infancy that is about to go boom, the way things are looking." - Clint Donovan
The property includes a four-bedroom homestead, two brand new staff houses comprising four bedrooms, two mare barns of 12 and 11 each with another 22 box-barn under constructions, a four-box foaling barn, a 14-box stallion yard, a covering shed and a stallion round yard.
There is also an office, workshop, wash bay and several storage sheds, a further staff room with accommodation and access to dams, bore and tank water.
"They are world-class facilities. They have spent every dollar on the place, as if they are going to own this for the next 50 years," Donovan said.
"They (Spendthrift Farm) are world-class facilities. They have spent every dollar on the place, as if they are going to own this for the next 50 years." - Clint Donovan
"Therefore the investment they have made and the infrastructure would be hard to beat worldwide. From the barns to the office, to the houses they have put on it, right down to the front gates, everything is world class."
A unique bloodstock offering
The valuation of the bloodstock portfolio, which includes four stallions, Swear, Gold Standard, Overshare and Dirty Work, a substantial broodmare band, their weanlings and yearlings, plus a very valuable collection of racing stock, is being co-ordinated through Magic Millions.
"Spendthrift have been significant investors in the Australian market in recent years and they have put a very strong portfolio of quality stock together," Magic Millions Managing Director Barry Bowditch said.
Gallery: Spendthrift Australia stallions
"They have built up a fantastic broodmare band and some very promising racehorses. It will be a great asset for anyone in the industry."
While dispersals of bloodstock portfolios are a relatively common occurrence in Australia, notably the Shadwell Dispersal through 2021, the opportunity to secure an entire portfolio along with a farm and business as a single item is quite rare and something that Bowditch thinks will lure some of the biggest players in the industry.
"To be able to walk into something of this extent, with the investment that Mr Hughes and his family have made, and the work that Garry Cuddy and his team have done here, is very unusual. They've not left a stone unturned," he said.
"To be able to walk into something of this extent, with the investment that Mr Hughes and his family have made, and the work that Garry Cuddy and his team have done here, is very unusual. They've not left a stone unturned." - Barry Bowditch
"It's sad to see the Spendthrift brand come to an end here in Australia, but for someone that is willing to come in at that level, it's an exciting and huge opportunity."
Ongoing success another selling point
Cuddy is co-ordinating the sale from Spendthrift's perspective and pointed to recent results as an example of the opportunities on offer for any new owner.
"I think the results speak themselves. Since the announcement of the sale has been made, Gold Standard has had his first winner, Swear is among the winners and Golden Artie, who is a homebred for us, punched his ticket to the Magic Millions 2YO Classic. There's plenty of quality in the bloodstock," he said.
"And there is plenty of quality on the payroll as well. I think that is one thing that will be beneficial to someone who wants to come in and make that lock, stock and barrel purchase, the high-quality team that are in place."
"One thing that will be beneficial to someone who wants to come in and make that lock, stock and barrel purchase, the high-quality team that are in place." - Garry Cuddy
Donovan emphasised that the absolute preference of Spendthrift is that the business, farm and bloodstock be sold as a single entity and said the level of interest to date indicates that is the likely outcome of the expression of interest process.
"The preferred type of sale is a walk-in, walk out deal where somebody comes in and they take full advantage of all the investment and work that Spendthrift have done since owning the property for the last seven years," he said.
Garry Cuddy
"The staff can then stay on as normal and they can continue running the breeding operation and stallion station as it is. The absolute preference is that it will all happen at once. It’s a turn key opportunity for someone to come in and assume ownership of all the assets."
Interest already flowing
Donovan expects the interest to come from across the world and said while there was no specific timeframe, any deal would evolve quite quickly.
"We've fielded several enquiries already and some more serious than others. I guess given the health of the Australian industry and the buzz around the Victorian industry, I think there is a lot of confidence that someone can take something of this scale on and know that they can capitalise on all the hard work that Garry and the team have done," he said.
"I think there is a lot of confidence that someone can take something of this scale on and know that they can capitalise on all the hard work that Garry (Cuddy) and the team have done." - Clint Donovan
"It will take as long as it takes so we can get the best deal possible. But in the interests of not upsetting the business and the breeding side of things, the sooner and more efficient the sale is, the better it is for everybody."
Cuddy said the Spendthrift team were optimistic an all-encompassing deal would get done.
Gallery: Some of the world-class Spendthrift Australia facilities
"We are hopeful. All we can do is put it out there and ask the question of the industry as to what sort of interest is out there. We have to sit tight and wait and see what comes of it once we press the go button on the sale," he said.
