Kiland Ltd (ASX:KIL) has selected AAGIM Investment Management Pty Ltd as property manager for its Kangaroo Island agricultural estate.
The contract is for six years, with a three-year option extension.
KIL owns 25,000 hectares of prime agricultural land on Kangaroo Island, which it is reverting from forestry to agriculture
Following a tender process, KIL’s wholly owned subsidiary Kangaroo Island Land Assets Limited, which holds or will hold all of Kiland’s agricultural properties, has entered into the Property Management Agreement with AAGIM, which will develop a Master Plan for Kangaroo Island Land Assets Limited to be approved by Kiland.
“AAGIM is the right partner for this project. We look forward to working with Marcus and his team in developing a top tier institutional-grade agricultural estate," Kiland executive chairman James Davies said.
"The terms of the Property Management Agreement incentivise AAGIM and ensure alignment of interest with Kiland shareholders.”
Plans for the future
The Master Plan will include a multi-year operational plan and detailed funding requirements. Services will be delivered during two phases: Mobilisation Phase and Operations Phase.
During the Mobilisation Phase AAGIM will:
- Prepare Master Plan;
- Cooperate with KILA to determine the opening cash position and obtain a debt facility if applicable; and
- Prepare budget, sites, begin staffing, procure machinery and supplies and prepare for initial reversion activities.
During the Operations Phase AAGIM will provide:
- Risk, Environmental and Stakeholder management;
- Estate Management including land access and licensing, procurement, planning and accounting;
- Tree and stump removal, Biomass disposal;
- Site preparation, fencing and water infrastructure build out; and
- Planning and executing all agricultural activities required to manage KILA’s estate.
“We are pleased to be appointed property manager and look forward to leveraging our extensive transformational agriculture experience to develop Kangaroo Island Land Assets Limited’s portfolio of high rainfall, high production assets into an institutional grade estate,” AAGIM CEO Marcus Elgin said.
About AAGIM
Founded in 1997, AAGIM is a leading private account and direct investment manager focused on the Australian farmland sector. AAGIM has managed assets in sheep for meet and wool, dairy, beef row crops and permanent plantings since 2005 for family offices, institutions and sovereign funds.
Over the past 11 years, AAGIM has managed more than 100,000 hectares of forestry-to-agriculture farmland improvement including harvest, land improvement, farm design and management of ongoing agricultural operations.