New Agriculture, a division of New Forests Asset Management, has launched a landscape strategy aiming to raise A$750m (€414m) to invest in sustainable agriculture projects in Australia and New Zealand.
The strategy will focus on four sectors – rain-fed and irrigated row cropping, horticulture, livestock and related agriculture infrastructure. It will also seek to capitalise on the emerging environmental markets such as carbon and biodiversity, renewable energy and conservation covenants.
Bruce King, director of New Agriculture, told IPE Real Assets: “We are seeing the emergence of nature capital as a desired asset class. Over the past year we have engaged with investors across Europe, Asia and North America to understand what it is they are looking to build into their portfolio.
“The heart of what investment in agriculture is about is meeting rising demand for an investment in sustainable food and fibre, while protecting natural resources. Our institutional investor clients are looking for assets that deliver consistent returns and the potential to contribute to long, impactful environmental outcomes.”
King said global capital was looking to invest in sustainable land management which could also generate uncorrelated returns from value-add opportunities such as carbon credits.
He told IPE Real Assets that while markets for biodiversity and carbon credits were still very much at the emerging stage, positioning assets to take advantage as those markets develop would unlock additional upside and diversify revenue streams beyond pure agricultural production focus.
David Shelton, managing director for Australia and New Zealand, New Forests said: “New Forests is recognised as an industry leader, with an established track record of nearly 20 years across both forestry and agriculture.
“Our approach has always focused on optimising land use, incorporating multiple revenue streams and environmental outcomes. This strategy represents a logical expansion of that approach and our expertise in this area.”
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