Coal baron Nathan Tinkler has finally agreed to sell his beloved horse racing stud Patinack Farm.
Tinkler announced a deal today to sell the thoroughbred racing and breeding operation to a consortium of local and overseas parties from the Middle East.
Tinkler has been clinging onto control of Patinack Farm since 2012 when it was placed in liquidation.
The sale shows how far Tinkler has fallen after once topping BRW’s Young Rich List with an estimated net wealth of $1.1 billion by the age of 35.
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Throughout all his troubles he has fought to retain his horse racing empire.
The consortium which has bought Patinack Farm is unnamed but the deal was negotiated by UAE-based investment firm Cibola Capital.
The sale will be on a “walk in, walk out” basis for an undisclosed sum.
It is unclear how much Tinkler will get back of the estimated $200 million to $300 million he has ploughed into buying the training facilities, stud farms and hundreds of high-quality racehorses which make up Patinack Farm.
Sale contracts have been exchanged and the transaction will be completed in the coming weeks.
Tinkler said he was “extremely pleased” with the sale and described the consortium as “an ambitious group” who will “continue to build” on Patinack Farm’s foundations.
“I am also satisfied that the investment I have made into the Patinack Farm facilities and bloodlines will continue and that Patinack staff will be offered employment,” Tinkler said in a statement.
Tinkler said he sold up as he now resides overseas and his focus is on the Tinkler Group’s “core operations” in resources and mining.
“The sale will allow further capital to be used in the development of our existing operations” Tinkler said.
He needs the cash after re-entering the coal market last week with a $150 million purchase of Peabody Energy’s Wilkie Creek mine in Queensland.
Daniel Kenny, chief executive officer of Cibola Capital, said in a statement the consortium was excited about growing the business by investing in breeding and racing across Australia and internationally.
“We are planning to expand the current operation offering a mixture of proven and new stallions for every breeder in Australia,” Kenny said.
“In a short space of time, Nathan has created and built Patinack Farm into one of the leading equine operations, with exceptional facilities and the ability to produce Group 1 winners.”
Patinack Farm is made up of three major properties including a 3300 acre breeding facility at Sandy Hollow in the NSW Hunter Valley, a 1000 acre training facility and stud at Canungra on the Gold Coast and 950 acres of undeveloped horse country at Monegeetta, Victoria close to the racecourses of Melbourne.
It currently has bloodstock of close to 600 horses.