Australian agricultural investment manager GO.FARM has acquired the Dellapool Aggregation and Sandmount North in Narrandera, New South Wales, and Katunga, Victoria, respectively, with a total investment of A$150 million (US$101.3 million). This move was supported by Qantas Super, which contributed as part of its A$200 million (US$135.1 million) commitment to GO.FARM. The acquisition will add over 5,000 hectares (12,355 acres) of farmland to GO.FARM's portfolio, now valued at A$1.3 billion (US$875 million).
GO.FARM aims to enhance the productivity of the acquired lands through technology and sustainable water management. The Dellapool Aggregation, previously used for hazelnut farming, will be transitioned into high-density olive groves. Meanwhile, Sandmount North will see an expansion of almond and tomato operations, bolstering GO.FARM's presence in the water-secure and climate-smart Murray Valley region.
The strategic importance of water entitlements associated with these acquisitions is underscored by the decreasing availability of water resources in the Murray-Darling Basin and the Australian government's efforts to secure water for environmental purposes. GO.FARM's approach aligns with the increasing interest from institutional investors in agricultural investments that incorporate natural capital, responding to societal demands for sustainable food production systems.
Qantas Super's investment reflects a growing recognition of agriculture's potential for delivering strong, long-term returns. This is part of a broader trend of super funds diversifying into natural capital assets, driven by member expectations for responsible investment practices. GO.FARM's recent capital raise of $300 million (US$198.4 million) for investments in natural capital assets further illustrates the sector's growth and appeal to investors.
Source: Global AgInvesting