This article is from the Australian Property Journal archive
AGRICULTURAL property real estate investment trust Rural Funds Group (ASX: RFF) has leased and sold a 50% interest in two cropping properties in Central Queensland to a company managed by The Rohatyn Group.
RFF has entered into an agreement to lease its Mayneland and Baamba Plains property for a 10-year term, with the transaction including the sale of a 50% interest of the properties.
The sale proceeds of $39.0 million are subject to adjustments relating to water licence certifications.
The lessee is a company managed by The Rohatyn Group (TRG) on behalf of a joint venture between TRG and a global institutional investor.
The transaction will benefit RFF through a reduction in exposure to operating earnings, confirmation of asset values and the capital from sale proceeds, which will be used for debt reduction.
In addition to farm management services being provided to the lessee by a wholly owned subsidiary of RFM.
The lease is in-line with existing cropping leases, with triple-net lease terms and option to extend for a further 10-years.
The lease will also include CPI annual indexation, within the 1.5% to 2.5% range, plus profit share mechanism.
Settlement is expected for early in the 2025 financial year.
