buy and lease

As of March 31, OCERS’ investment in the AAF was valued at $64.1m, which constitutes a 6.4% net IRR. The $16.7bn pension committed $40m to the fund in 2010.

Homestead Capital Farmland Fund III had raised just over $400m by the end of 2019 and has a $600m target – the buy-and-lease strategy is expected to reach final close in June 2020.

The fund had received subscriptions from institutional investors, private banks and wealth managers, all of which were returned after the income trust's IPO was pulled from the market.

Managing director David Bryant flags future acquisitions in the cattle and macadamia sectors after property revenues grew by 22%.

The fund will pursue a buy-and-lease strategy and will also target development projects that could deliver IRRs of ‘50-60%’, said a founding partner.

Firm partner Adam Oliver says institutional farmland managers’ efforts to broaden portfolios and diversify risk is helping create interest in the country.

The ASX-listed firm is unlikely to be able to enforce its win over the US-based Bonitas Research, but having a judge find in its favor is victory enough.

The firm has acquired and leased two greenhouse facilities to indoor ag company Revel Green and will repeat the formula for its upcoming acquisitions.

The fund will make investments ranging between $10-$50 million in farmland growing fresh fruit, vegetables and nuts.

The A$333m transaction includes six terminals across Australia, with a terminal at Port Kembla in NSW excluded due to competition concerns.