02/13/2012 5:00PM

Questroyal Stud purchases Sez Who North property in New York

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Questroyal Stud in New York has purchased Richard Simon’s former Sez Who North in Stillwater, N.Y., in partnership with Gus Schoenborn Jr., Questroyal announced Monday.

“This property is obviously a good place to breed horses, and now is the time to breed horses in New York,” Questroyal owner Barry Ostrager said. “There has just never been a better time to breed and race New York-breds.”

Sez Who North has 120 stalls and a stallion facility.

New York’s breeding industry has seen increased investment thanks to the long-awaited arrival of gaming revenue last fall, which prompted the New York Breeding and Development Fund to raise statebred breeders’ awards by 50 percent. Out-of-state breeding operations also have entered the New York market or expanded existing presences there in the last 12 months as breeders line up to take advantage of anticipated slots gains for the New York-bred program.

Schoenborn, the former owner of Contemporary Stallions in Coxsackie, N.Y., will own a 25 percent stake as minority owner in the new Questroyal property at Sez Who North.

Simon owned Sez Who North from 2001 to 2009, expanding his original Florida operation into New York and developing it into the state’s leading breeder by both purse earnings and stakes winners. At its peak, the New York farm had almost 1,000 Thoroughbreds. But the economic downturn, oversupply in the Thoroughbred market, and a 10-year delay in the introduction of slots at Aqueduct contributed to Simon’s exit from the business. In 2010, Mellon United National Bank foreclosed on the 270-acre Florida farm, alleging Simon had defaulted on $8.1 million in loans. The New York farm had been listed for sale with a $2.95 million price.

Questroyal currently stands the stallions Marsh Side, Roaring Fever, and Patriot Act. Its purchase of Sez Who North closes Feb. 21.