Permanent Crops

Water allocation prices have fallen, although stability in high-security water entitlement prices suggests a maturing of that part of the market.

Roc Partners’ Premium Food Fund was one of three buyers, alongside Primewest and another local buyer, for Harvard University’s Western Rosella portfolio.

The North Carolina-headquartered firm surpassed its hard-cap to close its distinct credit vehicle at $325m and took approximately $115m in co-investments.

The firm has had an action-packed 12 months since its entry into ag with MIRA’s acquisition of Vitalharvest, the launch of its own dedicated ag fund and a merger with Centuria Capital Group.

Returns of annual and permanent farmland remain divergent, with annual farmland seeing robust figures following favorable weather conditions and high farmgate prices.

OTPP’s AustOn will manage the new entity, known as Pomona Valley, with input from the current owners of the orchards.

The Melbourne-based GP is targeting 10-12% returns for its new vehicle, building on the 2019 launch of its Diversified Agriculture Fund.

Partner Andrew Sweet compares partially or fully developed fruit genetics libraries produced by government funding that has since dried to ‘stranded assets’, which the firm wants to acquire.

Agriculture showed ‘remarkable resilience’ as an asset class over 2020 as returns held relatively steady throughout the year.

Brent Snow says Aware Super’s ag investments proved to be a useful diversifier in its infrastructure portfolio during the coronavirus pandemic.