The end of a long and bitter family dispute has led to one of America’s premier thoroughbred farms worth tens of millions of dollars, Kentucky’s Adena Springs, being placed back on the market.
Texas-based expatriate Australian Bernie Uechtritz of Icon Global, the agent appointed to sell Adena Springs on behalf of the property’s owner Belinda Stronach, is pitching to numerous wealthy international thoroughbred industry investors in a bid to get a deal across the line and ensure the next “steward” can continue the stud’s legacy.
The 930-hectare property, which has in the past had an appraised value of US$50 million (A$73.978 million), has been under offer multiple times in recent years, but for various reasons, the deals have fallen through.
A contract of sale that would have seen a non-thoroughbred investor buy the property was terminated earlier this month, which coincided with the Stronach family settling their own legal fight.
It led to Belinda Stronach, the daughter of prominent industry identity Frank Stronach, taking ownership of Adena Springs, a farm that features 20 barns, a 24-unit staff accommodation, multiple executive homes, 32km of bitumen roads and more than 128km of equine fencing capable of agisting 1000 horses.
A new call for offers campaign has been launched by Icon Global.
“We have been tied up with and committed to some people for a period of time. As of two weeks ago that commitment is no longer in effect and we are back on the market,” Uechtritz revealed to The Straight.
“We have had a lot of approaches for a lot of really interesting uses, including but not limited to the thoroughbred industry.
“It is Belinda’s desire to see the farm ultimately put in the hands of somebody who is going to continue the legacy and continue to be a vibrant part of the thoroughbred racing industry.”
Adena Springs, located in the famous Bluegrass of America’s breeding heartland 30 minutes northeast of Lexington, has been home to elite American horses El Prado - the sire of well-known former Darley shuttler Medaglia d’Oro - as well as consistent top 20 US sire Ghostzapper and his own sire Awesome Again.
Uechtritz would not be drawn on who could potentially have the aspirations and the capital to acquire a property of Adena Springs’ size and reputation.
However, with international thoroughbred superpowers Coolmore and Godolphin already owning major North America studs Ashford and Jonabell Farm in Kentucky respectively alongside their extensive interests in Europe and Australia, Yulong founder Zhang Yuesheng could prove one individual with the desire to make a long-term investment in the US by acquiring a farm of Adena Springs’ scale to add to his growing empire.
Chinese coal mining billionaire Zhang has made Australia his primary home for his thoroughbred interests, with a broodmare band of more than 600 mares at his 1618-hectare farm at Nagambie in Victoria.
Zhang already has bloodstock interests in the US and Japan and a significant racing and breeding portfolio in Europe to complement his Australian arm.
That said, it is understood that there have been up to five parties who have made serious offers to buy Adena Springs over the past three years.
“When It was originally offered, it was offered at $55 million (A$81.39 million) because it had, and has several current appraisals that support that price range. Replacement cost would in my personal opinion be three times today’s valuation,” Uechtritz said.
“But at the end of the day, the definition of market value is determined by a real buyer and a real seller in an arms-length transaction. So, ultimately, value is determined by the market interest with real money, real terms in real time.
“We have shown that we are a patient seller - who also have serious past and present vested interests and considerable legacy within the vibrant thoroughbred industry.”
Uechtritz confirmed “the current focused interest” has emerged from Europe, North America and the Middle East.
“As I go back to the market we are in dialogue with several folks and interesting syndicates on a basis of interest, inclusive of clear and quick terms and effective ability to close a transaction,” he said.
“With some of the recent developments, we now have a clear and unencumbered runway to open and close a deal quickly and effectively.”
Uechtritz believes it would cost at least US$100 million to replicate what Adena Springs offers potential buyers considering the number and quality of the infrastructure and the value of the land.
“Adena Springs is a turnkey plug-and-play opportunity for any kind of equestrianism and now that we are back on the market we are looking at - and we genuinely are - any number of equestrian uses,” Uechtritz said.
“If we had two people each offering us $100 and one was a thoroughbred person and one was a hunter jumper person or a cutter or a reiner, Belinda, in all likelihood, would choose the thoroughbred person if the price and terms were the same.”
There was US$1.24 billion (A$1.835 billion) in bloodstock traded at public auction in America last year, down slightly on the 2022 peak of US$1.28 billion, and at this month’s Keeneland September Sale in Kentucky the buoyant nature of the local industry continued with 1540 yearlings changing hands at an average price of US$243,060 (A$359,737).
More than US$400 million was turned over at the 2023 Keeneland September Sale, the largest yearling auction in the world.
The sustained demand for bloodstock in America could drive further international investment in properties such as Adena Springs, much in the same way the prosperity of the Australian racing industry, particularly over the past decade, led to increased investment Down Under from entities from the northern hemisphere.
For instance, the late B. Wayne Hughes took his prominent Spendthrift Farm brand to Australia in 2015 after purchasing the former Yallambee Stud near Romsey in Victoria.
Spendthrift Australia spent millions on yearlings, mares and stallions, while also shuttling US sires such as Vino Rosso, Omaha Beach and Bolt D’Oro from Kentucky.
After Hughes’ death in 2021, aged 87, Spendthrift Australia was closed and its bloodstock interests were dispersed and the 244-hectare property was purchased by Hesket Bloodstock’s David Moodie and Ash Hardwick.
Renowned Hunter Valley farm Vinery Stud was also owned by Americans, firstly George Hoffmeister in the late 1990s until fellow American Dr Thomas Simon acquired the property soon after.
Rival Hunter Valley stud Newgate Farm, which was founded by Henry Field, is also partly owned by American outfit SF Bloodstock while well-known US breeders John and Jes Sikura of Hill ‘n’ Dale Farm and Mt Brilliant Farm’s Hutton Goodman have purchased yearling fillies at the Magic Millions on the Gold Coast this year with a potential long-term view of taking them back to America to join their respective broodmare bands.
“It is Belinda’s desire to see the farm ultimately put in the hands of somebody who is going to continue the legacy and continue to be a vibrant part of the thoroughbred racing industry” - Bernie Uechtritz on the potential sale of Adena Springs
Relative newcomer John Stewart, who established Resolute Racing last year, has also made a splash in his home country of America as well as in bloodstock markets in Europe and Australia over the past 12 months.
Stewart, who bought Shadayid Stud from Shadwell in 2023, underbid champion mare Winx’s first foal by Pierro at the Inglis Easter sale in April, going to $9 million, but he didn’t go home empty handed, spending $5.4 million on six yearlings.
Icon Global’s Uechtritz said the current state of the US racing industry added to the appeal of Adena Springs.
“Whether it’s (auction houses) Fasig-Tipton or Keeneland, any of the sales, anybody who is in racing has enjoyed a couple of really solid years,” he said.
“That’s across the board, not just in thoroughbred racing farms, but in ranching and valued real estate in general.
“Great real estate sells for great prices no matter what the market and economic conditions.
“This niche, high-end exclusive market, which is associated with the thoroughbred market and racing world, is no exception. It is really strong.”
