Sustainable Agriculture Fund (SAF) mainland assets under contract to be sold
| 27 September 2017
Melbourne, 25 September 2017 – One of Australia’s largest portfolios of dryland and irrigated cropping assets is under contract to be sold.
Located across three highly coveted agricultural regions (North Star and Darlington Point, NSW and Lake Bolac, VIC), the sale includes 10 properties with a combined area of over 16,000 hectares, excellent structural improvements, over 12,500 megalitres of Ground Water Entitlements, plant & equipment and standing crops.
The assets have been purchased by a number of parties, consisting of a combination of nearby local farming businesses and institutional investors, including TIAA-CREF Global Ag Properties.
AgCAP CEO Martin Newnham, who manages SAF on behalf of the investors said: “This is a particularly pleasing result for the investors and managers of the fund, and builds on the strong operational returns from the last two years to deliver a very robust total return to the investors across the life of the fund.”
AgCAP General Manager of Strategy, Deo de Jesus added: “AgCAP believes these transactions are in the best interest of the shareholders and our staff, and the future management of the assets. There will be continuity of operations with local contractors and service providers to be used under the new ownership.”
The sale was managed by CBRE Agribusiness' agents Duncan McCulloch, Col Medway, James Beer and Danny Thomas.
Danny Thomas, Regional Director commented on the sale process: “It was the most competitive we have witnessed through this cycle. Local farming groups bid very strongly for individual assets or combinations thereof, and the institutional and corporate groups bid very strongly for aggregations or combinations of aggregations. We also received bids for the total portfolio and the fund, albeit these bids were significantly exceeded by the combinations of bids for individual assets.”
AgCAP and CBRE will be making further announcements in relation to the King Island and Cradle Coast assets soon.
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