This article is from the Australian Property Journal archive
RURAL Funds Group (RFF) has secured a 40-year lease with US asset management company The Rohatyn Group for 3,000 hectares of central Queensland properties that will be used for macadamia orchards.
The orchards are located in the Maryborough, Bundaberg and Rockhampton regions.
The agreement with The Rohatyn Group, in a joint venture with a global institutional investor, is for an initial 1,200 hectares and a further 1,800 hectares of cropping and cattle land to be converted in FY24, subject to completion of the water supply for the Rockhampton orchards.
A $40 million loan will be provided to RFF on commencement of the initial lease, with an additional $60 million provided during the balance of the development, with debt to be repaid with interest over seven years.
Lease termination rights include the orchards failing to produce the equivalent of a mature yield of 3.6 tonnes per hectare over a rolling five-year period.
The triple net leases will have annual indexation between 1.5 and 2.5%, and profit share above certain thresholds.
RFF has been growing its focus on macadamias, and has stated ambitions of developing 5,000 hectares of orchards and launched a $100 million raising a year ago that would be used to develop 1,000 hectares.
