Key details of the leases and lessees are outlined below:
|Lessee||Payment frequency||Indexation mechanism||Rent review||Capital commitments|
|Cotton JV||Quarterly in advance||CPI||–||
The lessee of Lynora Downs is Cotton JV Pty Ltd (Cotton JV), a 50:50 joint venture between Queensland Cotton Corporation Pty Ltd and RFM, both companies with significant cotton experience.
RFM has over20 years of cotton growing experience and has previously overseen the development, growing operations, and marketing of an 8,000 ha irrigated cotton farm.
Queensland Cotton has a history of over 95 years and is the largest cotton merchant in Australia with 10 processing facilities. Queensland Cotton, in conjunction with its international parent company, specialises in marketing and processing cotton, and delivering product to more than 20 of the world’s major cotton-consuming markets.
RFM will lease Mayneland during FY21.
Approximately 25% of the Maryborough properties contracted to be acquired by RFF (disclosure 3 August 2020) are leased by private operators.