Warakirri Diversified Agriculture Fund
Warakirri Asset Management has launched a new agricultural fund, called the Warakirri Diversified Agriculture Fund, which will purchase and develop a diversified portfolio of Australian agricultural assets and lease them to high quality tenants.
The fund will focus on investments in higher value sectors such as nuts, fruit, vineyards, intensive livestock, agriculture infrastructure and water.
“Warakirri is pleased to announce this initiative and has observed, over a long period of time, the value to investors of incorporating professionally managed agriculture into their investment portfolios” Warakirri managing director, Jim McKay, said.
The unit trust is targeting over $300 million in investments and has a minimum investment of $100,000. The management fee is 1 per cent of gross assets under management. There is also a performance fee of 15 per cent of fund outperformance over an IRR (internal rate of return) highwater mark of 8 per cent per annum.
Launch date: 15 Nov 2018. First Close: 31 Mar 2019
"I have the privilege of working with great people:" Q&A with Warakirri Asset Management's Adrian Goonan
- You've been managing agricultural assets for decades, why was this fund established now?
Warakirri has been managing discrete agricultural investments for large pension funds for over 22 years. Our newest fund, the Warakirri Diversified Agriculture Fund, has been established on the back of direct enquiry from a different segment of the investment community, the family office, high net worth and not-for-profit space. Historically, this group of investors has had limited access to direct agricultural investments of this nature.
- How has Australian agriculture changed during the decades you've been investing in it?
Australian agriculture has changed considerably over the past two decades. Most notably through increased farm and investment scale, accompanied by increased demand for Australian agricultural products domestically and globally. Complementing this we have seen significant improvement in the sophistication and quality of agricultural operations. We continue to see agriculture shifting from small family-owned enterprises to larger corporate enterprises. When we started investing in cropping farms in the mid-90’s our target farm scale was 4,000 hectares – today we are targeting 20,000 hectares and beyond in some regions.
Collectively these factors make agriculture a far more attractive investment opportunity than it has been in the past.