Rural Funds Management Limited (RFM), as the responsible entity of the Rural Funds Group (ASX: RFF), completed the lease and co-investment of two high-quality cropping properties in FY25 with a global institutional investor.
The properties, Mayneland (2,942 ha) and Baamba Plains (4,130 ha), are located near Rolleston in central Queensland. When initially acquiring the properties, central Queensland was targeted by RFM for high yield potential and asset pricing dislocation.
The transaction was initially announced in June 2024 and consisted of a 10 year triple net lease and the acquisition of a 50% interest in the properties. It was structured With a joint venture managed by The Rohatyn Group (TRG) on behalf of TRG and a global institutional investor.
Partnership with TRG and a global institutional investor
TRG, a New York-based global asset manager with expertise in agriculture, forestry and emerging markets, manages the lessee company for this joint venture with a global institutional investor. TRG has expanded into Australian agriculture, capitalising on its stable regulatory environment, reliable water resources, and high-productivity soils ideal for irrigated cropping.
Transaction structure
The lease aligns with RFM's existing cropping lease rates and incorporates annual indexation with an incentivisation mechanism. The lessee’s return is comprised of farming operations and capital growth from development gains and land value appreciation, through the co-investment in the properties.
RFM provides farm management services, providing further alignment within the transaction structure.
Productivity developments
RFM invested significantly in both properties post-acquisition to boost productivity via additional irrigated cropping capacity. At Baamba Plains (acquired November 2021), developments expanded irrigation from two to five large-scale lateral irrigators covering over 900 ha, with new water storages built by moving 2.8 million cubic metres of soil into eight-metre-high walls for enhanced security and reduced evaporation. At Mayneland (acquired 2018), an additional 4,940 ML water storage was constructed, three centre pivot irrigators were upgraded with an additional seven installed, increasing the irrigated area from 485 ha to approximately 1,000 ha.
These enhancements, including expanded water infrastructure and consolidated fields up to one km wide by two km long at Baamba Plains, increased annual planted areas and operational scale ahead of leasing.
Development maps
Development summary
Implementation and outcomes
The structure exemplifies RFM's strategy of acquiring underutilised farms, executing targeted developments—like water storage and irrigation cropping area expansion—and partnering with high quality investors.
For wholesale investors, participation in lease and co-investment arrangements offers alignment, exposure to developed assets, and partnership with experienced RFM management.
