CEFC and CDPQ announce new strategic partnership focused on agricultural land in Australia

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Jun 20, 2023, 11:01 ET

The platform will invest an initial amount of AUD 200 million (CAD 178 million) over the next three years
The CEFC and CDPQ also become minority shareholders of Gunn Agri Partners, which will manage the acquired land as part of the new partnership
Acquisition of a first farm dedicated to row crops in New South Wales

SYDNEY and MONTRÉAL, June 20, 2023 /PRNewswire/ - The Clean Energy Finance Corporation (CEFC), an Australian government-owned green bank, and CDPQ, a global investment group, today announced the launch of a strategic partnership focused on agricultural land in Australia, with a first acquisition of a farm dedicated to row crops located in New South Wales. The new platform will invest an initial amount of AUD 200 million (CAD 178 million) over the next three years to acquire assets that will be managed by Gunn Agri Partners, a leading Australian farmland manager, of which CDPQ and the CEFC will become minority shareholders.

Gunn Agri Partners was established by a team of agricultural and investment industry professionals combining decades of hands-on experience in institutional farm ownership and management. The firm adopts an industry-leading sustainability approach to agricultural asset management that allows it to establish a scalable and specialised operational team in the local communities where the assets are located. Through this partnership, Gunn Agri Partners will be well positioned to build on its position in the Australian market.

The first asset acquired covers 1,200 hectares of arable crops and areas suitable for grazing and conservation. Weather conditions in the area allow for a range of summer and winter cropping options—including cereals, oilseeds, pulses and dryland cotton.

"This CDPQ investment is a welcome addition to the Australian market, to demonstrate the potential for institutional capital to drive the decarbonization of agriculture. We believe there is enormous untapped potential for new investment in a sustainable future for agriculture as part of a net zero economy," said Heechung Sung, Head of Natural Capital at the CEFC. "By facilitating the flow of much-needed capital into the sector, our work with CDPQ supports the decarbonization efforts of farmers while boosting production and enabling them to remain competitive globally. The platform will showcase market leading sustainable land practices to farmers across multiple production and climate regions, offering a pathway to reduce their carbon footprint."

"Through this partnership as part of our Sustainable Land Management strategy, we are reaffirming our commitment to investing alongside organizations that are truly moving the needle on sustainability in the agricultural sector by contributing to its decarbonization," said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ. "The CEFC and CDPQ's experience—combined with Gunn Agri Partners' recognized expertise as a land operator—will enable us to aggregate and manage farmland in the attractive Australian market, in line with regenerative agriculture practices."

Established in 2020 within its Infrastructure portfolio, CDPQ's Sustainable Land Management initiative seeks to invest in land-focused assets with long-term positive environmental impact and the highest ESG standards, demonstrating strong alignment with the CEFC's aspirations around sustainability.

"The DNA of our business is to be completely investor-aligned, to capture timely opportunities and to develop and operate assets with sustainability as a fundamental part of our management. I am very proud that is exactly what we have delivered on. Gunn Agri Partners was established in 2013 and has over 2.5 million acres of grazing pastures and forests in Northern Australia and is on track to deliver target returns," said Bill Gunn, Founding Chairman of Gunn Agri Partners. "Our second strategy, focused on row crops is fully deployed and has recorded above target returns to date. Our permanent crop strategy is fully deployed and has received follow-on investments."

ABOUT THE CEFC
The CEFC is a specialist investor at the centre of efforts to help deliver on Australia's ambitions for a thriving, low emissions future. With a strong investment track record, we are committed to accelerating our transition to net zero emissions by 2050. In addressing some of our toughest emissions challenges, we are filling market gaps and collaborating with investors, innovators and industry leaders to spur substantial new investment where it will have the greatest impact. The CEFC invests on behalf of the Australian Government, with a strong commitment to deliver a positive return for taxpayers across our portfolio.

ABOUT CDPQ
At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at December 31, 2022, CDPQ's net assets totalled CAD 402 billion. For more information, visit cdpq.com, follow us on Twitter or consult our Facebook or LinkedIn pages.

CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.

ABOUT GUNN AGRI PARTNERS
Gunn Agri Partners is an Australian-based agricultural asset manager with more than $750 million in AUM and commitments and is the manager of the Transforming Farming, Wilga and Wollemi platforms – agricultural investments that incorporate regenerative farming practices and the management of natural capital assets side by side with commercial farming.

SOURCE CDPQ