$90 million five-farm aggregation sold

The world’s biggest farmland investor has secured a 14,074ha five-farm aggregation located in Central West NSW near Forbes. See the details.

A sprawling 14,074ha five-farm aggregation, located near Forbes in central west NSW, has been sold by one of Australia’s largest agricultural investment groups.

AAM Investment Group, which owns almost $900 million in Australian agricultural assets, has announced they have sold their Sunshine Farms Aggregation.

It is understood the US Teachers Insurance and Annuity Association of America and College Retirement Equities Fund’s Nuveen Natural Capital, the biggest farmland investor in the world, has purchased the aggregation.

Sunshine Farms adds to Nuveen’s $2.3 billion Australian portfolio, which comprises more than 70 properties and 860,000ha of farmland, of which 88 per cent of its assets are leased-out row cropping properties, producing winter and summer cereals, oilseeds and cotton.

Listed for sale by AAM last August, the Sunshine Farms Aggregation was expected to attract offers worth $90 million-plus. The value of the transaction remains undisclosed, but it is understood to have been sold in line with expectations.

Originally acquired by AAM in January 2020, the Sunshine Farms Aggregation was the first strategic land and development acquisition of their Diversified Agriculture Fund.

AAM managing director Garry Edwards said the aggregation would continue to operate with most of the existing staff staying on.

“We have been fortunate to have a great team of people on the ground managing the Sunshine Farms properties. They will be central to the ongoing operations of the assets and have been instrumental in delivering the successful transition of ownership,” he said in a statement.

AAM Investment Group have sold their 14,074ha Sunshine Farms Aggregation, located near Forbes.

The Sunshine Farms Aggregation comprises five properties within a 25km radius, including Bergen Park (2835ha), Warili (1111ha), Glencoe (3666ha), Sunshine (4820ha) and Round Cowal (1643ha).

AAM paid $16 million for the Sunshine and Round Cowal properties, including a 925ML river water licence in February 2020.

During their four-year tenure an extensive program of capital works to improve the asset was completed by AAM, including an extensive irrigation development program incorporating more than 2100ha of laser-levelled flood irrigation.

“We are extremely proud of the significant improvements the AAM team has undertaken to enhance the infrastructure and land use of the aggregation, which will continue to create operational efficiencies for the new owners,” Mr Edwards said.

AAM listed the Sunshine Farms aggregation for sale last August with $90 million price expectations.

“Our core philosophy is to acquire, develop and operate assets across a diversity of supply chains and geographic locations around Australia, and create a sustainable legacy in the regional communities in which we invest.

Water is a key feature at the Sunshine Farms aggregation with 11,556ML of general security water drawn from the Jemalong Irrigation Scheme, 2050ML of Lachlan River general security water and 1160ML of Upper Lachlan Alluvial groundwater along with 300ML of on-farm storage.

In recent seasons the aggregation has grown cotton, wheat, barley and faba beans crops as well as fodder to support beef, wool and prime lamb ventures.

LAWD senior director Danny Thomas and director Ian Robertson handled the sale.