New Partnership Formed to Acquire Agricultural Land in Australia

The Clean Energy Finance Corporation (CEFC), an Australian government-owned green bank, and Canadian fund management company Caisse de Depot et Placement du Quebec (CDPQ), announced 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 A$200 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.

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.

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.

Bill Gunn, Founding Chairman of Gunn Agri Partners added: “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.”