29 January 2016
- Orchards located near Bundaberg in Queensland
- 259 hectares of macadamia trees
- 234 ha leased to a tax effective managed investment scheme (MIS), planted between 2007-2009 with similar structure to the RFM Almond Funds which are current lessees to RFF
- 25 ha of mature orchards to be leased to RFM
Investment case:
– orchards are entering maturity and have reached profitability
– provide a logical extension of RFF’s almond exposure
– 117 lessees with full recourse (MIS 78% and RFM 22%)
– the assets meet RFF’s selection criteria
– will utilise RFM’s almond farming expertise to improve farming outcomes
– competitive cost of production with likely productivity gains
– provides climatic diversification
– macadamia industry growing rapidly
- Transaction is conditional on RFM being appointed responsible entity of the project, Growers meeting to be held on Wednesday, 24 February 2016. This is consistent with the existing RFM Almond
- Funds structure
- RFM will also acquire the existing farm management entity and
- control farming operations. RFM’s farm development, horticultural
- expertise and management systems will be applied to these assets
The transaction will:
- exceed the AFFO and IRR hurdle
- increase assets under management by approximately $8.6m
- be initially debt funded with banking approval received
- provide additional long lease of up to 21 years
The acquisition represents a measured first step into the macadamia industry
