Media release 7th March 2022.
Major Australian natural capital investment company Kilter Rural has now closed off its Australian Farmlands Fund with AUD$65m raised. New, independent valuations of the portfolio of properties in the fund received last week show an 18% uplift since the last valuation was completed in June 2021, supporting the funds’ strategy of investing in undervalued or mispriced farmland regions that access highly secure irrigation water.
The Australian Farmlands Fund targets a net IRR of 10-12%, with a target 50/50 split in investments between farmland and water. The fund is the only agricultural fund certified with the Responsible Investment Association Australasia and will ultimately comprise a portfolio based on a dozen properties and approximately 4,000ML of water entitlements.
Commenting on the close, Kilter Rural CEO Cullen Gunn said today that there were tectonic shifts globally in the way capital was being deployed and that Kilter was increasingly leveraging strong institutional interest, particularly from the northern hemisphere.
“The growing support Kilter Rural is achieving from the investment community both here and internationally illustrates that firms such as Kilter Rural that are part of the transition to a low carbon future can gain significant investor support, be a part of the solution and still make great returns.”
Kilter Rural was established in 2004 to deliver profit with impact: investing at scale in the regeneration of farmland, water and environmental assets. Kilter Rural’s Australian Farmlands Fund regenerates soils and farm systems for sustainable food production, scaled biodiverse reforestation and carbon sequestration. Kilter Rural also has two open-end Water investment funds, the Kilter Water Fund with 15%+ annualised returns and the Balanced Water Fund which is an environmental impact investment fund managed in conjunction with The Nature Conservancy, on target to deliver one of Australia’s largest private water donations this financial year.
Kilter Rural has over A$300m in funds under management and in 2019 was awarded Australian Impact Asset Manager of the Year.
Kilter currently manages 12,000 hectares of farmland across northern Victoria.
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