Investment fund AAM Investment group pays $16 million for Sunshine aggregation in Lachlan Valley, NSW

An agriculture investment fund has reportedly paid about $16 million for two mixed-farming properties.

Big spender: Garry Edwards managing director of AAM investment group.

AN INVESTMENT fund has reportedly paid $16 million for an aggregation of properties in the Lachlan Valley in NSW.

Specialist agriculture investment firm AAM Investment Group has snapped up what is known as the Sunshine Aggregation and Round Cowal, both situated near Forbes, NSW.

The fund reportedly paid a combined $16 million for the properties.

Sunshine Aggregation is a 4820ha mixed farming operation in the Lake Cowal area, while

Round Cowal is 1640ha mixed irrigation farm in the Corinella district, with a 925 megalitre river water license.

In November last year, AAMIG announced it was seeking $60 million to buy a diversified portfolio of poultry, beef, lamb and cropping assets.

It said it hoped to provide annual returns of 12 per cent to investors.

AAMIG said the fund’s core strategy was “the development of sustainable, integrated operations within the key animal protein sectors of chicken, beef and lamb”.

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AAMIG founder and managing director Garry Edwards said the fund had been set up to take advantage of greater global demand for high-value protein, capitalising on the efficiency of large-scale farming operations in Australia.

“The AAM Diversified Agriculture Fund is designed to leverage off the global buy-in into the agriculture sector, driven by the rising middle class in Asia, changes to global diets with increased animal protein consumption, the increasing population and the domestic and global expectation of enhanced food security,” Mr Edwards said.

“Given global uncertainty, very low interest rates and other asset classes at historical highs, we believe that the returns offered by agriculture are compelling.”