GO.FARM, a prominent Australian agricultural company managing 88,000 hectares, is initiating a $600 million agriculture fund. This investment comprises a $300 million capital raise and a $300 million debt financing. Established in 2012 by Liam Lenaghan, the company oversees $1.1 billion in assets. The new Responsible Agriculture Fund aims to enhance its portfolio, starting with a water-rich seed asset.
Since 2015, the Costa family office, associated with the Costa Group, has been a substantial stakeholder in GO.FARM. The Costa Group, known for its vast fresh produce operations, was recently acquired by a consortium including Driscoll's for $1.4 billion.
GO.FARM specializes in producing field tomatoes, almonds, grains, oilseeds, pulses, citrus, and wine grapes. The Responsible Agriculture Fund is designed to attract investment by offering a diversified portfolio across various climates, water sources, and crop types.
Liam Lenaghan emphasizes the need for deep domain expertise and deliberate asset transformation to achieve sustainable earnings and positive regional impact. He highlights the historical performance of farmland and water entitlements, with CAGRs of 8.5% and 6.7% respectively, underscoring the potential for above-average returns through strategic management. GO.FARM's approach to asset selection and transformation, backed by a team of agricultural specialists, aims to deliver superior returns to investors, leveraging Australia's agricultural potential.
Source: businessnewsaustralia.com