European fund of funds major Adveq has bought 18,000 hectares of almond orchards in Australia for A$211m through its real assets arm.
The woods account for about half of Australia’s entire almond production and make up 3.5 per cent of the world’s market, which surpassed $3.5bn last year according to the Almond Board of California.
Municipal Employees’ Retirement System of Michigan and Danica Pension were active co-investment partners during the establishment of the Adveq Almond Trust II, which was created to purchase the orchards.
Adveq Real Assets executive director Berry Polmann said, “We are pleased to have kick-started our co-invest platform with almonds, the king of crops, and have like-minded co-investors alongside us.
“Institutional investors are attracted to farmland investments for their diversification benefits and long-term inflation protection.
“In addition, investors require sustainable performance, in an asset class that might be challenging to access.”
Copyright © 2014 AltAssets