Warakirri to buy farms for superannuation and pension funds

Warakirri Asset Mangement is setting up an agricultural investment portfolio. See what it is targeting.

Warakirri Asset Management plans to set up an agricultural investment portfolio for institutional investors such as superannuation and pension funds.

WARAKIRRI Asset Management is seeking Australian and overseas institutional investors for a $300-$500 million fund to buy and manage agricultural investments.

The Warakirri Farmland Fund has evolved from the $50 million Warakirri Diversified Agriculture Fund set up in 2019 for wholesale investors, including family funds, charities and advisory groups.

Warakirri head of marketing Joe Marassa said, in the search for investors for the 2019 fund, the company found interest from a European pension fund willing to invest in Australian agriculture.

Mr Marassa said WAM was seeking other small to mid-tier institutional investors to partner with the unnamed European pension manager to invest in the Warakirri Farmland Fund.

“We are now looking to raise between $300 million and $500 million from half a dozen to 10 clients with larger licks of money,” he said.

The capital would be used to purchase established corporate farms on a buy and leaseback arrangement with the existing owners.

Mr Marassa said that could free up capital from the existing corporation to expand their operations.

Warakirri was targeting horticultural, viticultural, water entitlements and selected row crop assets.

Investors would be required to commit their funds for at least seven years.

Mr Marassa said there would be a window of opportunity for investors to sell their stake to another investor during that period without having to wind up the fund.

Portfolio manager Steve Jarrott said the Warakirri Diversified Agriculture Fund established a portfolio of investments “that will provide secure, long-term income return of 8-9 per cent per annum, with strong long-term capital growth potential”.

“There is a compelling case for investors to consider agricultural exposure as part of a well-diversified investment portfolio,” Mr Jarrott said.

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