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Historic Kentucky stud Calumet Farm has been sold and will be leased to billionaire Brad Kelley as a base for his breeding operations Bluegrass Hall and Hurricane Hall.

Calumet is now under the control of Calumet Investment Group Trust after the group acquired the 799-acre property near Lexington from Kennelot Stable for nearly $36 million. The sale includes all property, the farm name and silks.

"Both operations owned by Mr Kelley will be consolidated on the property," said Charles Middleton, a trustee for the Calumet Investment Group Trust.

Kelley bred last year's 1000 Guineas and Irish Oaks winner Blue Bunting.

His Bluegrass Hall operation bred this weekend's Kentucky Derby hope Optimizer and owns Kentucky Oaks runner Colonial Empress.

Calumet is one of America's most famous thoroughbred operations, having produced more Kentucky Derby winners than any other stud.

It fell into bankruptcy in 1992 until it was bought by the late Henryk de Kwiatowski at auction for $17 million. He restored the property to an operating stud.

Around 280 horses are currently on the farm will be relocated. It is expected the ownership transition will be completed by July.