Anew fund that plans to invest in western Australian wheat farms was launched Feb. 17, aiming to raise 65 million pounds (US$105 million) in total.
JPT Capital cited a change in diets in southeast Asia towards more wheat-based food and the growing global population as contributing to a bullish outlook for wheat prices, providing a favourable backdrop for the fund and asset performance.
“Our timing couldn’t have been much bet ter,” JPT Capital chief executive John Paul Thwaytes told Reuters.
The asset-backed fund, which aims to deliver average annual income returns of 9.25 per cent, already has 15 million pounds and wants to raise a further 50 million. It has lined up farms to purchase in western Australia.
Thwaytes said farmland investments in other countries such as Argentina had been considered but issues such as the availability of clear ownership title made Australia attractive.
“With Australia, the legal system is excellent and the cost of land was very favourable,” he said.