July 2013 - mapartners

WSJ Reports – Singapore’s Duxton Invests in Australia Apple Orchards

Wednesday, 3rd July 2013

Singapore-based Duxton Asset Management has made an investment in Australian apple orchards, injecting 12 million Australian dollars (US$11 million) into apple grower Rivercorp Land and Water.

The funds raised will be used by Rivercorp to invest in Australian horticulture. Rivercorp fits well into our globally diversified agricultural investment strategy, Duxton chief investment officer Desmond Sheehy said. Duxton, which focuses on alternative investments in agriculture and emerging markets, manages around US$620 million. It has four other investments in Australia: a dairy farming operation in Victoria state, cereal and lamb production outfits in New South Wales state and stone fruit orchards in Queensland state.

Rivercorp is a shareholder and member of the Lenswood co-operative, which claims to be the largest supplier to Australian supermarket chain Woolworths Ltd.WOW.AU-2.26% in South Australia state. Rivercorp is also a partner to Geoffrey Thomson Orchards, which says it’s the largest supplier to Australia’s other dominant grocery chain, Coles.

South Australia state produces around 29,000 tons of apples a year, representing approximately 9% of the nation’s apple production. One of the reasons we invested in Rivercorp is because its market is predominantly domestic, Mr. Sheehy told MoneyBeat. With the Australian dollar now well below US$0.95, the nation’s export-focused agricultural assets will become more interesting to us.

Melbourne-based M&A Partners advised Rivercorp Land and Water.

By Gillian Tan WSJ Full Article

Duxton Group Invests $12M into SA Orchards

Monday, 1st July 2013

Duxton Asset Management, based in Singapore, and associated investors have invested $12M AUD into Rivercorp Land and Water apple orchards, joining a consortium of investors in a transaction managed by M&A Partners of Melbourne.

We are pleased to be investing alongside a capable management team at Rivercorp and we look forward to partnering with them in the coming years while growing and expanding this business noted Ed Peter, Chairman of Duxton.

The new capital will be used by Rivercorp to invest further in horticulture within Australia.

It’s positive to see a leading global investment group allocating capital to the Australian agricultural sector – it should encourage local capital to take a harder look at opportunities in the segment commented Mark Hardgrave of M&A Partners.

Duxton specialises in alternative investments within agriculture and emerging markets with c. $620M USD in FUM. Duxton is currently invested in agricultural projects on 5 continents, including four in Australia.

The team at Rivercorp is excited to be tying up with Duxton and looking forward to benefiting from their international farming expertise said CEO Fergus McLachlan.

Rivercorp has major orchard operations in the Loxton and Mount Gambier regions of South Australia. Duxton is excited about the prospects for Rivercorp with its significant scale and exposure to early season apples in South Australia.

Desmond Sheehy, Chief Investment Officer of Duxton commented, Rivercorp fits well into our globally diversified agricultural investment strategy. Following other recent investments in Vietnam and India, Duxton is pleased to have closed another investment in Australia, a key region for our firm.

For further information:

Rivercorp Land and Water Limited

Fergus McLachlan 08 8267 6622

M&A Partners Pty Ltd

Mark Hardgrave 03 9078 5850