Two mining magnates and a meeting of minds – How Yulong’s Hunter Valley plans became a reality

Analysis: There’s something in the (often cold and brisk) air that sweeps through Inglis’ Oaklands Junction sales complex near Melbourne Airport.

For just a few weeks a year it comes alive with thoroughbred industry figures, owners, trainers, breeders and vendors, chasing their next good horse.

In late February and early March each people from all over Australasia and further afield gather for the Inglis Premier Yearling Sale. And with that there is usually a dose of speculation disguised as fact.

For at least two of the past three Premier sales, the biggest tip you’d get wasn’t a winner at Flemington, but that Segenhoe had been sold and that Yulong was the buyer.

As long ago as 2024, before the famous Hunter Valley farm went on the market, people were adamant it had been done.

Two years later, at this year’s Premier sale, the talk was even stronger that Segehoe was a done deal.

This time they were right, albeit it took almost another two months to arrive at Wednesday’s announcement that Yulong had secured its Hunter Valley “trophy property”.

Kevin Maloney and Yulong’s Zhang Yuesheng, both men of considerable means, had come to terms on a deal for the famed property.

The final price wasn’t disclosed, but was worth in excess of $30 million, maybe closer to $40 million. It’s a lot of money, but then again, the Golden Slipper winner Guest House cost that much when sold to Coolmore just last month, while it is also about half what Coolmore paid for proven New Zealand sire Super Seth earlier this year.

It’s not a shock Yulong has established a base in the Hunter Valley, the southern hemisphere’s largest thoroughbred breeding region. With 600-plus mares and a growing stallion roster, it was just a matter of time.

But it just took longer than most people expected 

Both men, Maloney and Zhang, haven’t got to where they are without being able to drive a hard bargain. They had come close to an agreement in 2024, only for a final deal to fail to materialise.  

Breeding (and racing) is just one of many business interests the pair is engaged in day to day, with Zhang a mining magnate in his home country of China.

Maloney, as chair of the Tulla Group, has also made much of his fortune through the mining sector, in part by providing accommodation for fly in, fly out (FIFO) workers across Australia’s remote mining regions.

After Zhang’s interest in Segenhoe more than two years ago, Maloney officially cast the net wide in an attempt to lure competition – or another buyer – by listing the vast thoroughbred property for sale via Donovan & Co and Magic Millions in May 2024.

To many observers, or those listening to the rumours and innuendo that swirled on end, it appeared to be a one-horse race.

But Donovan says that wasn’t the case, with an international marketing campaign garnering significant interest in a property that has produced Group 1 graduates including Joliestar and Pride Of Jenni, among others.

“There most certainly was (other parties interested) and we went through a raft of inquiries from everywhere from Saudi Arabia to America to domestic (buyers),” Donovan told the Straight Talk podcast. 

“We also had a lot of investment firms looking at such a trophy asset in the Australian thoroughbred landscape. 

“The more they dig into those sort of farms, dig into horse studs probably without too much familiarity from their end, it becomes a bit confusing so ultimately the buyer was always going to be someone already with a strong foothold in the industry that wanted to either increase presence or get hold of one of the best farms in the country.”

The news of Yulong’s purchase of Segenhoe, released at 6pm on Wednesday, came on the same day that the merged entity Kia Ora and Vinery Stud consolidated their stallion rosters into one.

Kia Ora’s Farnan, Captivant and first season sire Tropicus will all stand at Vinery this year.

The advantages of scale, even at that level, are impossible to ignore particularly in the current economic climate.

It’s a factor that Donovan, who has quickly become one of the major sellers of prime equine real estate across the eastern seaboard, acknowledges.

“Upkeep and staffing are the two main issues and often why your investment firms or investors might shy away once they start looking under the bonnet (of horse studs),” he says.

“So, I think with all of these land transactions, particularly of significant scale like Segenhoe, it’s got to begin with one thing and that’s a passion project for the horse, for the breed, for producing the best horses humanly possible. 

“The passion or love for the animal and the industry has to come first and foremost.”

To some, Maloney might be a ruthless businessman but he’s also happy that Zhang is the new custodian of the historic Segenhoe Stud.

“That was important as it’s been here since 1908, the year South Sydney came into the (rugby league) comp,” Maloney told The Straight. 

“So, it’s good that someone like him is passionate about it, and that he was eventually able to get there (to buy a quality farm in the Hunter Valley).”

Maloney won’t be lost to the industry. He is retaining his broodmares, he is keeping his share in the James Harron Bloodstock mares’ breeding syndicate and he has countless horses in work with various trainers.

Other agents might be envious of Donovan getting the opportunity to sell a property with such a high valuation, but it hasn’t been easy.

There’s been countless phone calls … not least of all from this journalist.

“I would like to publicly thank the Maloney family for entrusting Magic Millions and my firm with the transaction,” Donovan said. 

“It’s been a property that’s been very dear to their hearts; they’ve loved it. Peter O’Brien’s been at the helm for 13 to 15 years I believe and in that time there’s been 18 individual Group 1 winners off the farm. 

“So, I’m just delighted for the Maloneys that they can hand over to the new entity Yulong who are so heavily invested and passionate about the game. 

“It’s a great story all round … and we look forward to Yulong’s tenure for many years to come.”