A bit of a similar venture....
disallowed/business/banking-and-finance/why-macquarie-is-looking-to-pump-billions-into-farms-20191219-p53lgg.htmlWhy Macquarie is looking to pump billions into farms
The portfolio includes avocados, various other crops, cattle and a 49 per cent stake in the country’s largest cotton farm, Cubbie Station.
Despite the extreme conditions, O’Leary says there remains strong demand from big investors, especially from overseas, to own Australian farms. Some of its investors have pledged to lock up their capital for 15 years and O’Leary stresses that over longer time frames, farmland is a "highly defensive" asset.
Farming is volatile due to factors such as drought but Macquarie aims to limit volatility by spreading capital across a range of different types of farms, in various climate zones across the country.
O’Leary says it has been "a really tough year across the board," due to the lack of rain. The geographic mix of farms has helped, but not as much as it normally would.
Domestic superannuation funds have a small allocation to agriculture, with Australians only making up about 15 per cent to 20 per cent of the investors in these funds. But O’Leary says overseas funds, including those in Europe, have a history of backing the sector.
"When those funds look around the world at risk-weighted returns and an opportunity assessment, Australia fares very favourably," she says.
