June 29, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

The Clean Energy Finance Corporation (CEFC), a green bank owned by the Australian government, and global investment group CDPQ have formed a strategic partnership with leading Australian farmland manager Gunn Agri Partners that will focus on agricultural land in Australia.

Under the terms of the agreement an initial sum of AUD200 million (US$132.5 million) is being committed as a cornerstone investment that will be invested over the next three years for the acquisition of assets that will be managed by Gunn Agri Partners.

“This CDPQ investment is a welcome addition to the Australian market, to demonstrate the potential for institutional capital to drive the decarbonization of agriculture,” said Heechung Sung, head of natural capital, CEFC. “We believe there is enormous untapped potential for new investment in a sustainable future for agriculture as part of a net zero economy.”

“By facilitating the flow of much-needed capital into the sector, our work with CDPQ supports the decarbonization efforts of farmers while boosting production and enabling them to remain competitive globally.”

Sung continued, “The platform will showcase market leading sustainable land practices to farmers across multiple production and climate regions, offering a pathway to reduce their carbon footprint.”

A Decade of Delivering

Established by a dedicated team of industry professionals with decades of experience in institutional farm ownership, farm management, and the leadership of some of Australia’s top farming businesses, Gunn Agri has a deep well of experience throughout the agricultural value chain in fund management, corporate governance, and advisory services. 

Currently the firm has AUM exceeding AUD750 million (US$497 million), and is the manager of the Transforming Farming, Wilga, and Wollemi platforms – agricultural investments that incorporate regenerative practices and the management of natural capital assets in connection with commercial farming. 

“Gunn Agri Partners was established in 2013 and has over 2.5 million acres of grazing pastures and forests in Northern Australia and is on track to deliver target returns,” said Bill Gunn, founding chairman, Gunn Agri Partners. 

“Our second strategy, focused on row crops is fully deployed and has recorded above target returns to date. Our permanent crop strategy is fully deployed and has received follow-on investments.”

The firm explained that it takes an industry-leading sustainability approach to agricultural asset management, allowing for the establishment of a scalable and specialized on-the-ground operational team where assets are located. 

Emmanuel Jaclot, executive vice-president and head of infrastructure with CDPQ, also addressed the key role sustainability plays in this partnership and platform, stating, “Through this partnership as part of our Sustainable Land Management strategy, we are reaffirming our commitment to investing alongside organizations that are truly moving the needle on sustainability in the agricultural sector by contributing to its decarbonization.”

“The CEFC and CDPQ’s experience—combined with Gunn Agri Partners’ recognized expertise as a land operator—will enable us to aggregate and manage farmland in the attractive Australian market, in line with regenerative agriculture practices.”

The first asset acquired via this partnership is a row crop farm consisting of 1,200 hectares (2,965 acres) of arable crops and additional area suitable for grazing and conservation in New South Wales. In regard to potential, the partners noted that the weather conditions in the area allow for a range of both summer and winter crop options including cereals, oilseeds, pulses, and dryland cotton. 

“The DNA of our business is to be completely investor-aligned, to capture timely opportunities and to develop and operate assets with sustainability as a fundamental part of our management,” said Gunn. “I am very proud that is exactly what we have delivered.”

* Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com

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