Mormon Church's Alkira Farms acquires NSW assets

ASX-listed Duxton Farms sold its Kentucky property for $38 million to Alkira Farms, which is part of the agricultural investment management unit of the US-based Mormon Church.

The New South Wales-based Kentucky property encompasses 6020 hectares and 48 megalitres' worth of stock and domestic water entitlements. This is located within the Wirrinya cropping district 30 kilometres southwest of Forbes off the Newell Highway.

Last November, Duxton Farms flagged that the Kentucky portfolio was up for sale as the firm shifts away from dryland cropping and expands into the Australian agricultural sector in terms of geographic footprint and commodities produced.

Duxton Farms, however, retains the remaining 423 hectares and 1463 megalitres of Jemalong Irrigation General Security surface water part of the portfolio.

Duxton Farms chair Ed Peter said: "The sale of Kentucky is a major milestone for Duxton Farms as the board continues to execute on its strategy of reorienting the focus of the company's investment strategy away from dryland cropping and towards a diversified mix of new development opportunities in Australian agriculture to build significant value by elevating and stabilising the company's earnings profile in the long-term."

The funds will be invested in new and existing opportunities, reduce debt and pay a distribution to shareholders.

Warakirri Asset Management's Solterra manages the assets on behalf of Alkira Farms in Australia.

Farmland Reserve, which oversees Alkira, is the investment arm of The Church of Jesus Christ of Latter-day Saints.