Rural Funds Management Limited (RFM) as responsible entity and manager for the Rural Funds Group (RFF) has completed the acquisition of the Kerarbury and Kamelda properties (collectively referred to as Kerarbury), located near Darlington Point, NSW.
As communicated in previous market announcements, Kerarbury has been leased to Olam Australia Pty Ltd (Olam) for a period of 22 years and nine months. Olam will develop and operate a 1,500 hectare almond orchard on the property.
The final condition precedent to the commencement of the lease is the approval of the transaction from the Foreign Investment Review Board, which is expected shortly. Management will provide updated information as appropriate.
News of the Kerarbury property settlement comes as eligible investors are offered the opportunity to take-up their rights in 20.4 million new RFF units to be issued in the 2 for 13 non-renounceable Entitlement Offer.
The fully under-written offer closes on 21 October 2015 and is expected to raise $22.4m. This follows an initial $12.6m raised through an 11.5m new unit Placement to institutional investors.
The $35m raised at a price of $1.10 per unit will form part of a funding package for the purchase and development of Kerarbury.