Water

Kilter Rural raises $65 million

By Geoff Adams

Mar 7, 2022

Growing: Kilter Rural’s Australian Farmlands Fund argets a net return of 10 to 12 per cent, with a target 50/50 split in investments between farmland and water. Photo by Simon Bingham

Rural water and farmland investor company, Kilter Rural, has closed off its major investment fund with $65 million raised.

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Kilter Rural redevelops under-valued farmland in the Murray-Darling Basin, including northern Victoria, and also buys up water entitlements.

The company is one of the largest tomato growers in northern Victoria, supplying the Kagome factory in Echuca.

The Australian Farmlands Fund targets a net return of 10 to 12 per cent, with a target 50/50 split in investments between farmland and water.

The fund is trying to achieve a portfolio based on 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 that Kilter was increasingly leveraging strong institutional interest, particularly from the Northern Hemisphere.

“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.”

Kilter Rural’s Australian Farmlands Fund regenerates soils and farm systems for sustainable food production, scaled biodiverse reforestation and carbon sequestration.