macadamia tree small pot plant
500ha of macadamia trees to be planted by November this year. Image – Canva.
  • Raise to fund macadamia farm development, potential acquisitions and water entitlements
  • Is a fully underwritten 1 for 8.4 accelerated pro rata non-renounceable entitlement offer
  • Retail offer opens 14 July

Today, Rural Funds Group (ASX: RFF) announced upcoming equity raising, macadamia orchard developments, and the acquisition of cattle properties and water entitlements.

Development and acquisitions

Throughout FY20 and FY21 RFF has acquired $104 million of land and water in Rockhampton, Bundaberg and Maryborough for the development of 5,000 ha of macadamia orchards.

The Maryborough orchard has will see 500 hectares planted by November this year, and an additional 500 hectares by June next year.

RFF also likely acquire cattle properties in conjunction with a number of corporate lessees.

Finally, Rural Funds Group announced the acquisition of water entitlements in the New South Wales Riverina; the acquisition is for up to 8,388 megalitres for $38.4 million, leased to a private farming company for five years.

Equity raising

The $100 million raise is via a fully underwritten 1 for 8.4 accelerated pro rata non-renounceable entitlement offer.

RFF has priced units at $2.47, representing a discount to yesterdays closing price of $2.60. It is also a discount to yesterdays VWAP of $2.62 and the theoretical ex-rights price of $2.59.

Rural Funds Group also said the FY22 forecast distribution yield is 4.7%, and new units issued rank equally with existing RFF units.

Key dates for the process include today’s announcement and institutional offer.

The retail entitlement offer will open on 14 July, with early retail acceptances due 20 July. The retail offer closes 28 July.

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