Silva Capital acquires Cobungra Station for an estimated $50.3m
Silva Capital, a carbon investment manager, has completed the unconditional purchase of Cobungra Station in Victoria’s high country. The property was sold by Rural Funds Group for an estimated $50.3 million and covers 31,292 hectares.
The holding contains 6,497 hectares of freehold land as well as extensive alpine agricultural leases. It is regarded as a major cattle asset in the region and can support large-scale livestock operations. Existing grazing agreements will remain in place, so cattle production is due to continue alongside the planned environmental work.
Silva Capital intends to establish permanent native trees and shelter belts on selected parts of the property. The plantings are intended to store carbon and generate Australian Carbon Credit Units. The management plan therefore combines reforestation initiatives with continued commercial livestock production rather than ending agricultural use of the station.
The acquisition has attracted political scrutiny. Federal representatives have called for possible intervention by the Foreign Investment Review Board, with concerns centred on the conversion of productive agricultural land into carbon-sequestration projects. The debate has included questions about long-term food security and regional employment.
Opponents of carbon-focused acquisitions have also argued that institutional investors with substantial capital could raise rural property values and outbid traditional pastoral operators. The concerns relate to the use of productive land for carbon assets while pastoral businesses continue to operate in the same market.
Funding for the transaction reflects investment from energy, mining and aviation interests in carbon-offset assets. Japanese power producer JERA provided $25 million to the fund, while Australian institutional investors supplied commitments exceeding $100 million. The acquisition places environmental plantings, carbon-credit generation and livestock production within the same commercial landholding.
