Investment objective
The Fund aims to generate a total portfolio level internal rate of return (IRR) after fees, expenses and Fund level tax, of 7% to 11% per annum via a stable income stream from leasing out assets to high quality agricultural businesses and long-term capital growth of the portfolio assets.
Investment strategy
The investment portfolio will be developed over time within the strategic portfolio asset allocation, with individual investments and portfolio weighting subject to opportunities and value. The Fund will focus on higher value sectors with attractive lease terms and quality tenants. Examples of likely assets in higher value sectors are nuts, fruit, vineyards, intensive livestock, agriculture infrastructure and water.
Portfolio holdings
An indicative long-term portfolio asset allocation is provided below:
| 0-40% |
Fruit (Citrus, pears, olives, apples, avocados, mangoes & berries) |
|
| 0-40% |
Nuts (Almonds, macadamia, walnuts & pistachios) |
|
| 0-30% |
Vineyards (Wine & table grapes) |
|
| 0-30% |
Intensive Livestock (Poultry meat) |
|
| 0-20% |
Agricultural Infrastructure (Processing, greenhouses & storage) |
|
| 0-30% | Water Entitlements | |
Fund raising
Applications for Units in the Fund for Stage 1 close the earlier of the receiving Committed Amounts of $100m or entering exclusive negotiations on an asset. In order to achieve further scale and portfolio diversification, it is expected an expansion will take place over time in Stage 2 with the aim of achieving Committed Amounts over $300m. Foundation investors from Stage 1 will receive preferred terms.
Available to wholesale investors only. Please contact us on 1300 927 254 or contact@warakirri.com.au for a copy of the Information Memorandum and an Application Form.
Summary
The global thematic of rising populations, increasing wealth and changing population demographics is not new. An increasing global demand for food, particularly in Asia, provides an opportunity for Australian agriculture to capitalise on its competitive advantages and future growth prospects to deliver strong investment returns.
An investment in agriculture can offer:
- Competitive risk adjusted returns over the long term;
- A low level of volatility relative to other asset classes; and
- Returns uncorrelated to other traditional asset classes
Fund Documents
The Zenith Investment Partners (ABN 27 103132 672, AFS Licence 226872) (“Zenith”) rating (assigned 18 December 2019) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines