Funds Under Management

Southern Cross Poultry Fund

The Southern Cross Poultry Fund (SCPF) acquired 100% of a large-scale poultry farming infrastructure facility located in South Australia, including ownership of land and operating assets, producing over 10 million chickens per annum.

 

With income underpinned by contracts with Australia’s largest chicken processor, the SCPF has consistently provided a secure source of long term quarterly cash yields of 10% per annum for investors.

 

The unique benefits for our investors in this type of agriculture production model is high levels of consistency and predictability in financial performance of the business through significantly reduced exposure to fluctuations in input commodity prices, including the cost of chicks and feed grain.

 

With annual production of over 10 million birds, the significant scale and certainty of supply volume produced by the SCPF is of unique strategic significance to customers and underpins material comparative advantage over smaller industry operators.

Pastoral Development Trust

The Pastoral Development Trust (PDT) represented a unique opportunity to invest in a large scale cattle station in Northern Australia that has significant development potential through improving the utilisation of Australia’s largest privately held dam.

 

The PDT acquired 100% of Legune Station, located in the Northern Territory close to the Western Australia border. Legune Station has the potential to become a highly profitable cattle station with diversified income streams. The cattle station benefits from a reduced risk of drought due to the significance and annual reliability of the water storage on site.

 

Legune Station is a well maintained 178,870Ha cattle property with access to a further 106,400Ha of licenced productive land which has the current cattle carrying capacity of 33,034 Adult Equivalent (AE).

 

A 35,100 megalitre dam has been constructed on the property which is classed as Australia’s largest privately held dam.

 

Our strategy in acquiring this premium cattle station is to expand the cattle herd and develop an irrigated cropping program to sustainably utilise water stored on the property.

 

Legune Station will also lease out a portion of the cattle station to the ASX listed Seafarms Group Limited (Seafarms) for them to develop their vertically integrated aquaculture project, called Project Sea Dragon.

Sustainable Softwood Trust

The Sustainable Softwood Trust acquired 100% of a stand-alone softwood saw milling facility, located on the Central Tablelands of New South Wales (NSW), Australia.

 

The Sustainable Softwood Trust was structured with a view to delivering fully franked, half-yearly distributions. The attractiveness of this investment was supported by a mature industry, with well-established and understood economic drivers.

 

The processing facility that the Sustainable Softwood Trust owns, is a purpose-built sawmill consisting of land, buildings and state-of-the-art plant and equipment. The facility processes approximately 92,000m3 of raw material (saw logs) per annum and has a development approval to process 210,000m3.

 

Developed in 2006 on a greenfield site, the facility was designed by an operator that had  30 years of experience in the sector, which has made the mill a low cost and highly efficient mill when compared to its competitors.

 

The Sustainable Softwood Trust provided a unique opportunity for our investors to enter the regenerative timber processing industry.

 

The facility was strategically designed to take a larger proportion of smaller logs, placing it in a favourable position in the processed timber value chain. The facility currently uses 100% of the sawlog input. Approximately 50% of the logs are cut into finished product and the balance of the materials (sawdust, shavings and offcuts) are sold and reused in alternative products such as chipboard.