The opportunity exists for Wholesale Investors to express interest in an investment in the Tasmanian Farming Trust ("TFT"). The Manager of TFT will be Compass Agribusiness Management LP. Compass Agribusiness Management ("Compass") is a privately owned company, with teams in Australia and New Zealand delivering agricultural asset management services, along with agricultural and rural professional advisory services. The Compass team has more than 20 years’ experience in the agribusiness and financial sectors of Australia and New Zealand and a proven track record in managing the performance of large-scale farming operations, delivering both production and financial returns.
Tasmania has been identified, and targeted because of the highly secure water in the state. With nearly 13% of Australia’s total freshwater located in Tasmania, this resource is one of its greatest competitive advantages. The Derwent Valley in the southern region of the state is of particular focus to Compass with the Derwent River being one of Tasmania’s most reliable water resources. Compass has positioned its assets around the catchment areas for this water, underpinning highly reliable irrigation supply and subsequent low cost of production.
The intended initial focus is investment on opportunities with a combined capital value of $35.9m. Assets will include Tasmanian water rights and security, farmland, buildings and associated irrigation infrastructure, development expenditure, livestock, plant, and machinery.
Three dairy operations that are currently managed by Compass will make up the core assets of this opportunity, plus one additional off-market, neighbouring property. Drawing on the strong connections across the state Compass has identified additional off market highly irrigated properties to expand this farming trust.
Based on assumptions, Compass expects a ROE from the trust of 8% to 11% p.a. on contributed equity and compounded capital growth of 5%. An intended base distribution of 4% p.a. return on contributed equity, will be paid on a quarterly basis. An additional distribution, paid as either cash or as additional contributed equity, will be made at the end of the financial year.
An Investor Flyer can be accessed by clicking the Documents tab. To be connected to the Manager, click the Register Interest button.