Adveq Real Assets has completed the purchase of 18,000 hectares of almond orchards in Victoria, Australia in partnership with co-investors. The orchards, operated by Olam Australia, account for approximately 50 percent of Australia’s and 3.5 percent of the world’s almond production, which surpassed $5bn in 2013 according to Almond Board of California.
Adveq Real Assets has today confirmed that it has completed the purchase of 18,000 hectares of almond orchards in Victoria, Australia for A$211mn, in partnership with aligned co-investors.
The orchards, operated by Olam Australia, account for approximately 50% of Australia’s and 3.5% of the world’s almond production, which surpassed U$5bn in 2013 according to Almond Board of California. The purchase is one of the world’s largest farmland transactions in the past year and is part of the farmland investment platform managed by Adveq Real Assets (Adveq).
Municipal Employees’ Retirement System (MERS) of Michigan and Danica Pension were active co-investment partners during the establishment of the Adveq Almond Trust II, which formally purchased the orchards.
Berry Polmann, Executive Director of Adveq Real Assets said:
“We are pleased to have kick-started our co-invest platform with almonds, the king of crops, and have like-minded co-investors alongside us. Institutional investors are attracted to farmland investments for their diversification benefits and long-term inflation protection. In addition, investors require sustainable performance, in an asset class that might be challenging to access.
“In the words of Mahendra Shah, former Director of Qatar National Food Security Programme, ‘the best investment of any crop would be almonds, the nearest second best crop being pistachios’.”
The transaction consists of the sale of 18,000 hectares of land located near the Murray River in Victoria, Australia, 12,000 of which are planted with three million trees. The land will be leased back for a period of 18 years.
Gaia Arnaboldi, Executive Director of Adveq Real Assets continued:
“Responsible and sustainable practices are a key element of our investment philosophy. We will partner with Olam, who will continue to operate the orchards, to ensure these remain at the forefront of sustainable uses in the delicate Murray River ecosystem.”
Founded in 1997, Adveq is a leading asset manager investing in private equity funds and real assets globally. It offers specialized investment solutions which allow the firm’s clients to access select private market segments globally. To date, Adveq has invested in more than 400 funds on behalf of its clients and generated consistent returns throughout economic cycles. Adveq’s client base comprises institutional investors such as pension funds, insurance companies, family offices and other financial institutions located in Europe, North America and the Asia-Pacific region. Many of Adveq’s investors are repeat, long-term clients with whom the firm has developed a role as a trusted partner for private market investing. Adveq has offices in Zurich, Frankfurt, London, New York, Beijing, Shanghai, and Hong Kong, as well as an agent relationship in Sydney.