Rural Funds Group
(ASX:RFF) has acquired three cattle properties in Northern Queensland for $53 million.
The acquisition will be balance sheet funded after an entitlement offer earlier this year.
The properties cover an area of more than 390,000 hectares and have been purchased from family-owned business, Camm Agricultual Group, which has been operating for 20 years.
Rural Funds has identified development opportunities to increase carrying capacity of the properties, with a budget to provide $2.5 million for the lessee to undertake productivity capital expenditure.
The properties will be leased out for a period of 10 years, indexed annually at 2.5 per cent and reviewed at the end of the fifth year, and allows the lessee to acquire trade cattle.
Shares in Rural Funds Group
(ASX:RFF) closed flat at $2.10.
