Key details of the leases and lessees are outlined below:
|Lessee||Payment frequency||Indexation mechanism||Rent review||Capital commitments|
|Select Harvests Ltd (ASX: SHV)||Quarterly in advance||2.5% p.a. plus rent review||Market reviewed at 1 July 2016, and every 3 years thereafter. Review is based on unencumbered market value of orchard with contracted rate applied.||
|Olam Orchards Australia Pty Ltd||Quarterly in advance||CPI||n/a||
|RFM Almond Fund||Quarterly and half yearly in arrears||2.5% p.a.||n/a||
Select Harvests Ltd
Select Harvests Ltd (SHV) is an ASX listed company. SHV have geographically diverse almond orchards located in Victoria, South Australia and New South Wales.
SHV is Australia’s largest vertically integrated nut and health food company with core capabilities across horticulture, orchard Management, Processing, Sales and Marketing, enabling them to benefit throughout the value chain. They are also the country’s leading manufacturer, processor and marketer of nut products, health snacks and muesli to the Australian retail and industrial markets, in addition to exporting up to 70 to 80% of its almonds globally.
SHV supplies both branded and private label products to the key retailers, distributors and industrial users. Their market leading brands are: Lucky, Sunsol and NuVitality in retail markets and Renshaw and Allinga Farms in wholesale and industrial markets. In addition to almonds, SHV market a broad range of snacking and cooking nuts, health mixes and muesli.
SHV leases 1,221 ha of almond orchards from RFF.
Olam Orchards Australia Pty Ltd
Olam Orchards Australia Pty Ltd (Olam) is a wholly owned subsidiary of Olam International Limited, an SGX-listed entity.
Olam International produces over 45 commodities and is the world’s largest producer of almonds. Throughout their business Olam International distribute to over 25,000 customers worldwide, including leading global brands such as Kelloggs, Nestlè, KraftHeinz, Costco and Aldi.
Olam International’s value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 4.8 million farmers.
Olam leases 3,133 ha of almond orchards from RFF.
RFM Almond Fund
On 28 August 2019, Growers of the RFM Almond Fund 2006 ARSN 117 859 391 (AF06), RFM Almond Fund 2007 ARSN 124 998 527 (AF07) and RFM Almond Fund 2008 ARSN 127 947 960 (AF08) approved to merge the three funds. The merged fund is named the RFM Almond Fund (RAF). An area which was directly operated by Rural Funds Management (RFM) was also merged into RAF.
RAF leases a 593 ha almond orchard from RFF. RFM manages RAF on behalf of over 400 individual investors.