The Australia-based multinational investment firm Macquarie has announced that its Infrastructure and Real Assets fund has acquired a 49% stake in Queensland’s Cubbie Station, the largest agricultural irrigation property in the southern hemisphere.
The seller is China’s Shandong Ruyi, a subsidiary of Ruyi Group, the largest textile manufacturer in China and owner of the Lycra Company, which produces Lycra, Coolmax and Thermalite tech fabrics, as well as cotton and wool interests. Ruyi was obliged to reduced its stake under the terms of the Australian government’s Foreign Investment Review Board. Ruyi will retain a 51% interest post-sale under a joint ownership structure between Ruyi subsidiary Cubbie Agriculture and the Macquarie Infrastructure and Real Assets (MIRA) fund.
Price details surrounding the sale were not made public.
Announcing the transaction, MIRA Head of Agriculture Liz O’Leary said “Cubbie is one of Australia’s premiere agricultural assets and aligns with our investment thesis for long-term sustainable farming operations.”
Under the terms of the agreement, MIRA and Ruyi agreed to a binding commitment to contribute of up to 10GL of water to the Culgoa River and Lower Balonne streams following extended periods of dry weather.
The Cubbie property spans nearly 94,000 hectares of farmland, including some 22,00 hectares of irrigated cropfields, supported by just over 13,000 hectares of onsite irrigation structure, capable of producing more than 250,000 bales of cotton annually at full production capacity. According to Financial Review, water rights associated with Cubbie Station alone are valued at more than $106 million.