Farm investment fund raises a further $65 million as valuations rise

The Bendigo-based investor and management company, founded in 2004, has closed off its Australian Farmlands Fund and is currently managing more than $300 million in investments.

Kilter manages 12,000 hectares of farmland across northern Victoria.

Valuations of the portfolio of properties in the fund show an 18 per cent rise since June 2021.

The company says the new valuations support its strategy of investing in undervalued farmland regions that access highly secure irrigation water.

Kilter Rural's new fund targets a a 50/50 split in investments between farmland and water.

The investment company says its portfolio will "ultimately comprise" a dozen properties and about 4000 megalitres of water entitlements.

Kilter Rural chief executive officer Cullen Gunn said there were tectonic shifts globally in the way capital was being deployed and Kilter was increasingly leveraging strong institutional interest, particularly from the northern hemisphere.

MORE READING: Questions raised over Murray-Darling water buybacks.

"The growing support Kilter Rural is achieving from the investment community both here and internationally illustrates that firms such as Kilter Rural that are part of the transition to a low carbon future can gain significant investor support, be a part of the solution and still make great returns," Mr Gunn said.

Kilter Rural was established in 2004 to deliver profit with impact: investing at scale in the regeneration of farmland, water and environmental assets.

Kilter Rural's Australian Farmlands Fund is aimed at regenerating soils and farm systems for sustainable food production, scaled biodiverse reforestation and carbon sequestration.

Kilter Rural also has two open-end Water investment funds, the Kilter Water Fund with 15%+ annualised returns and the Balanced Water Fund which is an environmental impact investment fund managed in conjunction with The Nature Conservancy, on target to deliver one of Australia's largest private water donations this financial year.

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