Canada’s Public Sector Pension Investment Board (PSP Investments) has agreed to buy Olam International’s water rights in Australia’s lower Murray Darling Basin for A$490m (€303m) in a sale-and-leaseback deal.

In a separate transaction, PSP Investments has agreed to acquire some 12,000 hectares of almond orchards and related assets in Victoria from the Adveq Almond Trust for an undisclosed sum.

The almond plantation, originally developed in northern Victoria by Timbercorp, is currently leased by Olam Orchards Australia. 

Olam has entered into a revenue-sharing arrangement with PSP Investments for the almond orchards, related assets and permanent water rights.

The agreement covers an initial period of 25 years with options to renew for a further 25 years.

Olam’s managing director and CEO of edible nuts, Ashok Krishen, said the arrangement with PSP Investments would enable Olam Orchards Australia to focus on operations and continue to deliver best-in-class products and services to customers.

PSP Investments managing director and head of natural resources, Marc Drouin, said: “Our agreement with Olam Orchards Australia is consistent with our strategy to partner with best-in-class operators who take the long-term view, and to invest in high-quality agricultural assets globally.”

He said the arrangement was “also quite complementary” to PSP Investments’ existing permanent crop investments around the world, and represented “a unique avenue to add scale, particularly in Australia”.

In October, PSP Investments made an A$854m offer for Australian listed agri-business Webster.