Laguna Bay today announced the successful first close of the Laguna Bay Agricultural Fund (‘the Fund’), at A$280 million. This marks the launch of Laguna Bay’s second investment vehicle for institutional investors.
The Fund has a wide mandate within the agricultural sector. It will invest in a portfolio of low-risk, high-quality agricultural assets in Australia and New Zealand. The focus is on the generation of a stable and growing income yield, preservation of capital and potential for significant long-term capital appreciation.
Laguna Bay is the manager of the Fund and an investor in the Fund.
“Australia is a major agricultural producer and exporter, and one of the world’s lowest cost producers in the key commodities we export” said Tim McGavin, Co-Founder and CEO of Laguna Bay. “Yet it needs a significant amount of patient and aligned capital structured to suit agriculture. We believe the Fund will be an important participant in Australian agriculture” said McGavin.
The Fund will be diversified by sector, location and water sources. It has considerable flexibility to invest across sectors, in a mix of manager operated, joint venture and sale-leaseback assets.
“The Fund’s design reflects the desire of many investors to maintain a perpetual exposure to real assets like agriculture, whilst providing periodic review periods that provide for liquidity ” said Tim Biggs, Co-Founder and Chair of the Investment Committee of Laguna Bay. “With the right structure, institutional investors are attracted to agriculture as an asset class that generates a cash yield, offers a potential inflation hedge and provides diversification benefits with respect to most other asset classes” he added.
The launch of the Fund builds on Laguna Bay’s successful track record since its formation in 2010.
Laguna Bay focuses on unlocking unrealised farmland value. It has access to a pool of ‘bankable’ farming experts and prospective joint venture partners, as well as relationships with investors around the world, debt providers and leading participants in the farm value chain.
The Fund will have a final closing by May 2017.
For further information, please contact:
Chief Operating Officer, Laguna Bay
T: +61 7 5334 1011