Rural Funds Group contracted to acquire 5,409 ha of sugar cane farms from MSF Sugar Limited for AUD 81.1 million.
August 02, 2020
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Rural Funds Group (ASX:RFF) contracted to acquire 5,409 ha of sugar cane farms and 8,060 ML of Water Entitlements from MSF Sugar Limited for AUD 81.1 million on August 3, 2020. Under the terms, the transaction includes a two-year off-take agreement in respect to the cane produced on the farms, or a reduction in the purchase price and it also includes opportunity to purchase additional water rights. The transaction is funded from an approved increase to Rural Funds Group debt facility. The transaction is expected to be settled in October 2020.
Rural Funds Group is an Australia-based real estate investment trust (REIT). The Company owns a diversified portfolio of agricultural assets that are leased predominantly to corporate agricultural operators. It is primarily engaged in the development and leasing of agricultural properties and equipment. The Company leases almond orchards, macadamia orchards, vineyards, cattle properties, cropping properties, agricultural plants and equipment, cattle, and water rights. The Company holds three almond orchards approximately 4,068 planted hectares; six vineyards approximately 636 planted hectares; 13 macadamia orchards approximately 1,906 planted hectares; seven properties with areas to be developed into macadamia orchards with 2,520 hectares; 23 cattle properties made up of 18 breeding, backgrounding, and finishing properties and five cattle feedlots with a combined capacity of 150,000 head, and 15 cropping properties approximately 14,573 hectares.
RURAL FUNDS GROUP 
