ProTen Investment Trust completed the acquisition of poultry assets of Rural Funds Group.
December 18, 2019
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ProTen Investment Trust entered into an agreement to acquire poultry assets of Rural Funds Group (ASX:RFF) for AUD 72 million on October 26, 2019. The agreed assets accounts for 17 farms and equipment leased to RFM Poultry (NSX:RFP). As a result, Rural Funds Management Limited (RFM) has entered into agreements for the early completion of RFP’s leases and growing contracts, and the sale of RFP’s plant and equipment assets to ProTen Investment Trust. The agreements are subject to RFP Unitholder approval, by ordinary resolution. If Unitholder approval is not received, a break-fee of between AUD 0.2 million to AUD 0.3 million is payable to ProTen.
Closing of the sale transaction is also subject to termination of the mentioned lease and is expected to be completed by December 31, 2019. Proceeds from the transaction will be initially used to repay debt. Subsequently, it is expected this capital will be invested in natural resource predominant assets which have potential for higher total returns including acquisition of three cattle properties by Rural Funds Management Limited, viz. Petro, High Hill and Willara, for AUD 22.6 million.
ProTen Investment Trust completed the acquisition of poultry assets of Rural Funds Group (ASX:RFF) on December 19, 2019. Proceeds are expected to be distributed to unit holders in early 2020 as described in the explanatory memorandum.
Rural Funds Group is an Australia-based real estate investment trust (REIT). The Company owns a diversified portfolio of agricultural assets that are leased predominantly to corporate agricultural operators. It is primarily engaged in the development and leasing of agricultural properties and equipment. The Company leases almond orchards, macadamia orchards, vineyards, cattle properties, cropping properties, agricultural plants and equipment, cattle, and water rights. The Company holds three almond orchards approximately 4,068 planted hectares; six vineyards approximately 636 planted hectares; 13 macadamia orchards approximately 1,906 planted hectares; seven properties with areas to be developed into macadamia orchards with 2,520 hectares; 23 cattle properties made up of 18 breeding, backgrounding, and finishing properties and five cattle feedlots with a combined capacity of 150,000 head, and 15 cropping properties approximately 14,573 hectares.
RURAL FUNDS GROUP 
