Rural Funds Management Limited (RFM) is one of the oldest and most experienced agricultural fund managers in Australia.
Established in 1997, RFM manages approximately $1.5b of agricultural assets in three investment funds for which RFM is the responsible entity. Assets are located across New South Wales, Queensland, South Australia, Western Australia and Victoria.
RFM’s largest fund under management, the Rural Funds Group (RFF), is an ASX-listed real estate investment trust. RFF owns a $1.2b1 portfolio of diversified agricultural assets including almond and macadamia orchards, premium vineyards, water entitlements, cattle and cropping assets, all of which are leased to quality tenants.
RFM’s fee for the management of RFF is 1.05% p.a. of adjusted total assets and cost recovery. RFM’s key responsibilities include:
- Compliance to financial, farming and reporting requirements of leases.
- Water asset management including obtaining approvals and engagement with government.
- Management of infrastructure e.g. ongoing and development capital expenditure.
- Coordination of regular independent valuations.
- Facilitating acquisitions.
- Managing lessee/customer relationships.
RFM has a 24-year history and operates from a head office in Canberra, and offices in Sydney, regional New South Wales and Queensland. The company employs over 100 staff in fund and asset management activities.
The RFM Board and Management have relevant knowledge and experience in the sectors in which the funds are invested, gained through managing and developing assets including water, poultry (2003 to 2019), almonds (2006 to 2020), macadamias (since 2006), viticulture (since 2000), cropping (since 1998) and livestock (since 2010).
1Adjusted assets incorporates most recent independent property valuations, inclusive of water entitlements. Pro forma relates to $100m Entitlement Offer announced 8 July 2021. Funds raised to acquire water assets ($38.4m), debt reduction ($58.6m) transaction costs ($3.0m).