--------------------------------------------------- Australian Farms Fund to raise $300m 18 April 2007
A new rural investment trust, Australian Farms Fund (AFF), is embarking this week on a $300 million capital raising for its first round of major farm property purchases.
AFF announced earlier this year its intention to raise money to invest in a part property, part farming model.
It plans to buy about 25 rural properties over the next two years.
The Australian Financial Review quotes AFF director, Arthur Apted, this week as saying the returns would comprise about a 50-50 split between farm income and capital growth in the land value.
He describes agribusiness as the last big sector of the Australian economy yet, to attract the big institutional investors.
The group says it will rely on income and asset growth, rather than on generating tax write-offs.
He points out that ABARE shows bigger farms have returned an average of 12.2pc-12.5pc a year on total assets over the past 28 years.
SOURCE: Rural Press national rural news, updated daily by FarmOnline.
