Racetrack results speak to Spendthrift Australia opportunity

The sale of Spendthrift Australia's 602-acre Romsey Farm plus associated bloodstock, plant and equipment is currently being co-ordinated by Magic Millions after confirmation from Spendthrift head office in Kentucky in December that it would wind up its Australian operation.

While the superb facilities built up at the Victorian farm over the past seven years have attracted strong interest from both local and overseas suitors, the upside for any investor could be in the breeding stock and racehorses offered as part of a walk-in/walk-out basis.

Spendthrift Australia has invested significantly in quality colts over the past few years and at last year's Inglis Easter Yearling Sale purchased a Capitalist colt from Sledmere Stud's draft for $260,000.

On Saturday, on debut for Team Hawkes in the Spendthrift colours, that colt, Sebonack, won the G3 Chairman's S. on debut, a race won in the past by future Champion stallions such as Extreme Choice and Redoute's Choice.

"When you buy these good-looking colts as yearlings and they turn up and put in a performance like that on debut, I think we can't ask for much more," Spendthrift Australia's General Manager, Garry Cuddy, said.

Spendthrift co-owns Sebonack with Rupert Legh, Glentree Racing and Gary Lechte and that group now have quite a valuable colt on their hands, who is now second favourite for the upcoming G1 Blue Diamond S.

Cuddy recalls both he and John Hawkes had separately identified Sebonack at the Inglis Easter Sale.

"We are big on the movement of a horse and he moved perfectly for what Grant (Burrill - Farm Manager) and I like," Cuddy said.

"We were wandering around looking at our list and I saw from a distance that Team Hawkes had him out. It was getting down to the point where they would have a very short list and they were still looking at him. We went over and I stood next to John and I said, 'Do you like this guy as much as me?' He said, 'I definitely do!'"

"From that minute on, we formed a partnership and I think we were very fortunate in what was a very strong Sale to walk away with a colt for minimal spend. To sit here and have him as a stakes winner after one start is a fantastic achievement."

Sebonack, who is out of Al Samer mare Profound Wisdom, the half-sister to Aquis stallion Santos and Group 3 winner Melagrana (Fastnet Rock), is the first Group winner from the 2021 Inglis Easter Sale and just the second stakes winner after Cythera (I Am Invincible), who won the Listed Lonhro Plate earlier on Saturday.

The colt could further frank his value in Victoria's richest and most prestigious 2-year-old race on February 26 at Caulfield, but Cuddy is not getting too far ahead of himself.

"You can't complain having second favourites in Group 1s. He has put in the performance. Obviously, there is plenty of time between now and Blue Diamond Day and who knows what happens because we are dealing with 2-year-olds," he said.

"We will wait and see what comes of the next three weeks and hopefully we are standing there at Caulfield with a runner on the day."

Magic result sets the Standard

The value of Spendthrift Australia's emerging stallion contingent also looks to be on the up.

Gold Standard got his first stakes winner on Sunday, with Sheeza Belter's win in the R. Listed Magic Millions WA 2YO Classic at Pinjarra, while Lady Laguna, by Overshare, gave her sire a black-type bonus when she was narrowly beaten in the aforementioned Lonhro Plate by Cythera.

Sheeza Belter, trained by Luke Fernie, is one of just two runners for Gold Standard to date and took her record to two wins from three starts with her fast-finishing success.

"She should be three from three. She had no luck in her second start, and when she came around the turn on Sunday, the jockey had a lot of horse underneath him," Cuddy said.

"That acceleration, you’d love to have a barnful of horses that hit the line the way she did.

"His progeny have had five starts for two wins and two seconds, so you can't complain with how the horse has started out."

Lady Laguna suffered the first defeat in her three-start career but lost no admirers with her brave effort and the Annabel Neasham-trained filly is set to figure in the major 2-year-old races in the coming months.

"You can't go wrong with having two stallions with their first crop of 2-year-olds racing and both have got black-type performers from their first or second runner," Cuddy said.

"Lady Laguna is just going to continue to stand up and reading what Annabel has had to say about her, she's got very high hopes for her. When Annabel says she is one of the most forward horses in her stable, it’s a very good sign."

The upside

So what does a big weekend of results do for the overall value of the Spendthrift Australia business?

Clint Donovan is co-ordinating the Spendthrift Australia sale through his business Donovan + Co. in conjunction with Magic Millions and said the run of good results speak to the opportunity on offer to potential investors.

"The bloodstock portfolio is in its relative infancy at Spendthrift and they have done a great job of selecting broodmares and race fillies for the broodmare band, but also those colts that they are racing," Donovan said.

"Sebonack on Saturday is a reflection of the potential that is there. There is such an opportunity here, they have laid a wonderful foundation.

"On top of that, we have Lady Laguna and Sheeza Belter perform so well, both by first-season sires and both showing huge promise.

"It’s exciting, and again it reiterate and highlights the opportunity that is there for someone that wants to pick up the keys and take over and enjoy the success that is undeniably coming."

Donovan said the interest had been strong in the Spendthrift Australia business over the past few weeks, both from overseas investors and those within Australia.

"There's a lot of money around and there has been international interest and local interest and we have been very encouraged by that," he said.

"It's still open to all comers and we'd welcome any further interest."

Donovan emphasised the rare opportunity on offer for a buyer to come in and capitalise on the momentum built by Spendthrift in Australia.

"You may not find a better equipped and presented farm on this scale, with the dedicated equine infrastructure, it's world-class," he said.

"You couple that with the bloodstock portfolio in its infancy, it's unheard of. It’s really a turn-key stallion station and breeding farm and there is incredible upside to be had as a new owner."