ONE of Canada’s largest pension investment managers has spent $490 million buying almost 90,000 megalitres of high-security water in the lower Murray-Darling Basin as well as 12,000 hectares of almond crops in Robinvale.
Public Sector Pension Investment Board (PSP) has entered into an agreement to buy 89,085 ML of water from Olam Orchards Australia (OOA).
In a separate agreement, PSP Investments will buy 12,000 hectares of almond orchards and related assets in Robinvale, which were leased to OOA. The price of that sale was not disclosed.
The orchards and the water rights will continue to be operated by OOA.
The arrangement is for an initial period of 25 years with options to renew for another 25 years, during which time Olam will pay PSP Investments a share of revenue from the almond orchards.
The transaction is expected to be completed this month.
Olam managing director and chief executive of edible nuts Ashok Krishen said the arrangement would allow the company to “focus on operations and continue to deliver best-in-class products and services to customers”.
“I am confident this partnership with PSP Investments will help lead the industry in sustainable farming and agricultural practices and protect critical natural resources, such as water, in Australia,” he said.
PSP Investments’ managing director and head of natural resources, Marc Drouin, said the company was looking to partner with “best-in-class operators” who had long-term vision.
“It is also quite complementary to our existing permanent crop investments around the world and represents a unique avenue to add scale, particularly in Australia,” he said.
PSP Investments manages the pension funds of Canadian federal public servants, the nation’s defence forces and the Royal Canadian Mounted Police.
Its 2019 annual report showed PSP Investments had bought 44,000 hectares of cereal farms in NSW as well as 840 hectares of avocado orchards in Queensland.
In addition, PSP Investments made an $854 million offer for agribusiness Webster, which has walnut, broadacre and grazing properties in NSW, South Australia and Tasmania.
