UBS Global Asset Management, a U.S. farmland management company, is joining with Bydand Global Agriculture to establish a farmland investment vehicle focused on Australian and New Zealand farmland. Investors will be offered either directly owned and operated Australian farmland or directly owned farmland operated by Australian farmers. The initial investment, worth $200 million, will be focused on the Australian sheep, meat, and grain sectors but will expand and diversify with increasingly available capital. Within the first five years, UBS plans to be managing several billion dollars. Swedish pension funds AP–funden, Michigan Municipal Employee’s Retirement System, TIAA-CREF, Canada Pension Plan Investment Board, and Aquila Capital have all been either buying or showing interest in buying Australian farmland. And Macquarie Agricultural Fund Management’s $150 million cropping farmland company, Lawson Grains reported a $100,000 profit in a turn-around from a $3 million loss last year. The new venture will work with the top 20% of Australian farmers and will seek opportunities with large food security-driven investors.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service