Australian agricultural asset manager, AAM Investment, is seeking to raise around A$60m (€40m) in additional funding to bring its AAM Diversified Agricultural Fund (ADAF) to more than A$500m of assets.
Capital from the raising will be deployed to establish an integrated beef supply chain in Northern Australia, including the initial purchase of a further 40,000 head of cattle.
It will also support the acquisition of additional sheep and grazing land in Central Western NSW and an expansion of ADAF’s sustainable fibre supply chain, to complement its existing sustainable softwood processing assets.
AAM managing director, Garry Edwards, said Northern Australia presented an opportunity for ADAF to grow its presence in new geographic locations and develop further diversified supply chains in a region that held abundant potential for enhanced primary production.
“The time is right for Northern Australia to realise its potential as a powerhouse of the Australian agriculture sector and AAM is committed to what we believe will be a genuinely transformational program of long-term growth in that region,” Edwards said.
Edwards said Australian agriculture continued to perform strongly compared to other major asset classes and amid a backdrop of global uncertainty.
“Part of the industry’s performance has, of course, been driven by exceptional seasonal conditions, outstanding farmland valuations and multiple global market forces, including the Russian invasion of Ukraine, escalating concerns relating to food security and placing upward pressure on prices for soft commodities.”
A previous version of this story incorrectly said AAM Investment seeks an additional A$500m for its AAM Diversified Agricultural Fund. Rather, AAM Investment seeks additional funding to take its agricultural fund assets beyond A$500m
To read the latest edition of the latest IPE Real Assets magazine click here.