The location of the 24 properties in prime agricultural country, along with a yield of around 5 percent and the potential to generate carbon credits is attracting financial investors first and foremost.
Tag Archives | Australia
Milltrust Agricultural Investments has made its first acquisition through its MAI Australia Buy & Lease Fund, a vehicle it launched in June 2016 with the backing of UK institutional investors.
Tim Burrow, head of the trade association Agribusiness Australia, tells Agri Investor that despite a disappointing level of investment from superannuation funds into the local agricultural sector, the situation is slowly improving.
He focused on private equity investments in Europe and was a board member of a number of portfolio companies including Wyevale Garden Centres and Australian beef business CDC.
The National Farmers’ Federation and the boutique investment firm have already committed A$121m of the fund’s capital and expect a first close end of June.
AgCap has hired CBRE to sell the fund’s assets following a unanimous decision by its foundation investors, which include AustralianSuper and AMP Capital, to exit the fund despite double-digit returns.
New sources of investment and structural change are needed to increase Australia’s market share, Agribusiness Australia says.
Phillip Cummins, QIC’s global private equity principal, explains how the Australian investment manager is rethinking agribusiness, how it mitigates weather and commodity risk and why it would consider investing in water.
National Australia Bank expects cattle prices to fall further in 2017 due to softening demand abroad but is optimistic that weaker Australian dollar will help exports.
Setter Capital says timber accounted for the majority of transactions within the $331m in secondary sales of stakes in agriculture and timber funds recorded in 2016.