Rural Funds Group Limited (ASX:RFF) Investor Relations and Distribution Manager, James Powell, updates the market on the recent $72.5 million acquisition of three cattle properties in Northern Queensland from members of the Camm Agricultural Group.
The acquisition was foreshadowed as part of the entitlement offer of June 2017. RFF is now pleased to announce that we have contracted to acquire three adjoining cattle properties due to be settled in December. The properties are located in Northern Queensland, approximately 225 kilometres southwest of Townsville and includes both breeding property as well as finishing or fattening properties.
The transaction of the properties is valued at $53 million dollars, however this is part of a $72.5 million dollar transaction, and the balance is broadly for cattle, capex to improve the value of properties as well as additional security arrangements for our investors.
The Natal aggregation is a sale and lease back type transaction. The lessee is an entity, DA & JF Camm Pty Ltd, the directors of whom are part of the broader Camm family, an intergenerational, Queensland cattle farming family who are part of the Camm Agricultural Group.
The Camm Agricultural Group operate an integrated cattle farming business and have nine properties within their portfolio, including the three that RFM has acquired and is leasing. It is important to note the lease term is for ten years, with a market rent review at year five.
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