Rural Funds Group (ASX:RFF) Executive Manager, Funds Management, Andrea Lemmon discusses the group's first foray into cotton, with the acquisition of Lynora Downs in Queensland, and the benefits of diversification for the group.
Rural Funds is pleased to advise investors that the Rural Funds Group acquired Lynora Downs for $26.5 million, inclusive of stamp duty.
Lynora Downs is a 4,880-hectare property situated at the northern end of the Arcadia Valley, in central Queensland, situated in close proximity to Rewan station, a cattle finishing station that the Rural Funds Group acquired earlier this year.
The transaction also brings a quality lessee. Queensland Cotton will partner with RFM to lease Lynora Downs. Queensland Cotton was established over 90 years ago and has 11 state-of-the-art gins to process cotton throughout New South Wales and Queensland.
Lynora Downs is a first measured step into the cotton sector, similar to our steps into the macadamia and cattle industries made earlier this year. It brings climatic diversification, sector diversification and RFM’s operational expertise to the forefront.