Australian real estate group, Raine & Horne announced a deal to facilitate the purchase of $600 million in Australian agricultural land for a consortium of mostly foreign investors. This announcement comes close on the heels of the recent announcement by China’s Chongqing Hondo Agricultural Group’s intention to acquire up to $100 million in Australian cattle ranches within the next year.
The investors, who are mainly from China, the U.S., and Europe, are seeking to build a large scale portfolio of crop farms, including wheat farms, and processing assets across the country before they reach the open market.
“Some of the world’s most productive land is in Australia, so overseas investors view it as a safe investment,” Andrew Tout, co-principal of Raine & Horne told the Daily Telegraph, adding, “Agriculture is capital intensive and it’s a long-term investment, but many domestic investors are too impatient to wait out low returns and that’s opened the way for foreign investors.”
To receive relevant news stories with summaries provided by GAI News, subscribe to daily or weekly service.