Rural Funds Group has exchanged contracts to buy a cattle and cropping property aggregation in central Queensland in a deal worth about $68.8 million.
The deal comprises four properties, collectively referred to as ‘Kaiuroo’, that span 27,879ha in total.
The parcel of properties is located about 5km west of ‘Cerberus’, an existing cattle property owned by the group’s manager Rural Funds Management.
The acquisition comes with 12,448 megalitres of water entitlements, which the buyer plans to use to expand irrigated cropping areas and increase cattle carrying capacity through pasture improvement and additional water points.
Rural Funds targets assets with potential for productivity improvements; where Australia has a comparative advantage; and in agricultural sectors that it has operating experiencing in.
The buyer is expected to pay a $17.2 million deposit for the purchase in November, funded through a debt facility.
It has negotiated an extended settlement period of up to 24-months, which allows the manager to commence productivity developments and seek a lessee prior to settlement.
The acquisition comes after the group exchanged contracts to buy The Pocket and Baamba Plains cattle and cropping properties in central Queensland for $13.8 million and $32 million, respectively, in early November.
The group also acquired Macadamia orchards in Beerwah and Bauple for an amount of up to $63.1 million.
Rural Funds Group is an agricultural REIT listed on the ASX.
The REIT owns a diversified portfolio of Australian agricultural assets which are leased predominantly to corporate agricultural operators.