By Lynda Kiernan
Chicago-based Nuveen has acquired two farms near Moree in northern New South Wales, totaling nearly 4,000 hectares (9,884 acres) of dryland cropping acreage for a combined $28.4 million.
Acquired in 2014, and now a subsidiary of TIAA (formerly TIAA-CREF), Nuveen has $1.5 billion in assets under management, of which more than $4 billion has been allocated to investments in Australia, including 283,000 hectares (699,308 acres) of farmland.
The acquisition of these newest assets comes weeks after Nuveen secured an investment of $100 million from the Vermont Pension Investment Committee for its $2.4 billion Global Farmland Fund, its first open-ended farmland vehicle which will target acquisitions in the U.S., Australia, New Zealand, Brail, Chile, Poland, and Romania.
As a long-term investor with commitments that have lasted 20 years or more, Nuveen is committed to preserving farmland, conserving water, minimizing chemical use and nutrient runoff, and protecting the rights of its tenants and local communities.
Population growth, rising protein consumption, and farm product demands have made sustainability and stewardship leading concerns for Nuveen which is committed to aligning with the five Principles for Responsible Investment (PRI) Farmland Guidelines backed by the UN – environmental sustainability; labor and human rights; existing land and resource rights; high business and ethical standards; and transparency in reporting progress toward meeting the Farmland Guidelines, according to the firm’s website.
Through its affiliated asset manager Westchester, which identifies and underwrites its farmland investments, Nuveen holds more than 480 properties, growing 33 crop types (both permanent and row crops), across seven countries on three continents.
The properties acquired through the deal are the Wallam and Roydon farms, sold by Roger and Annette Turnbull. Wallam, which consists of 2,700 hectares (6,672 acres), was acquired for $19.88 million, and Roydon, which brings nearly 1,200 hectares (2,965 acres) with it, was acquired for $8.52 million.
Both properties are located in “The Golden Triangle” of New South Wales, a region between the towns of Moree, Boggabilla, and Warialda, and so-called due to its reputation for its prime agricultural land for the production of wheat, barley, and cereal crops.
Originally listed in May with CBRE for $7,413 per hectare ($3000 per acre), both properties are highly productive, and offer prime location, ideal climate, fertile soils, operational efficiency, grain storage for 8,500 tons, cattle yards, a workshop, machinery shed, and the ability to scale, according to CBRE.
“This rural property is ideally situated on the eastern side of the Newell Highway – a superior dryland farming location that is widely recognized for its quality production and strong historical performance,” said Simon Cudmore, a co-lister of the properties along with Col Medway, in May. “This location offers a significant premium in terms of value that we expect will ignite strong interest from both local landowners and corporate investment funds.”
This deal brings Nuveen’s capital investment in northern New South Wales to about $50 million in just the past year. Over the past 12 months, the fund acquired two separate properties in Burren Junction – one in March of this year totaling 2,731 hectares (6,748 acres), and another in November of last year totaling 2,284 hectares (5,644 acres).
Nuveen’s parent, TIAA, also made a significant investment in New South Wales and Victoria in 2017 when it acquired 10 properties accounting for more than half of the portfolio assets of Australia’s Sustainable Agriculture Fund (SAF), valued at the time at A$110 million (US$75 million).
– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.