An agricultural fund managed by Macquarie Infrastructure and Real Assets (MIRA or the Fund) and Shandong Ruyi (Ruyi) have joined hands to co-own Queensland’s Cubbie Station, associated properties and cotton ginnery (Cubbie). The two have signed a deal under which the Fund will take over a 49 per cent stake in Cubbie, while Ruyi retains 51 per cent.
Cubbie Agriculture, a subsidiary of Ruyi, will continue to operate Cubbie under a long-term operating agreement, with no change to the current on-property management and team.An agricultural fund managed by Macquarie Infrastructure and Real Assets (MIRA or the Fund) and Shandong Ruyi (Ruyi) have joined hands to co-own Queensland's Cubbie Station, associated properties and cotton ginnery (Cubbie). The two have signed a deal under which the Fund will take over a 49 per cent stake in Cubbie, while Ruyi retains 51 per cent.#
The joint ownership agreement provides certainty of ownership of Cubbie, supporting the local communities of Dirranbandi, St George and surrounding districts. It also brings together two experienced agricultural investors and operators and it is expected this combined expertise will build on the operational and sustainability initiatives that have already been undertaken on farm.
As part of the joint ownership agreement, the Fund and Ruyi have entered into a binding commitment to voluntarily contribute water to the Culgoa River and Lower Balonne intersecting streams (Lower Balonne) when it is most needed. The commitment comprises a voluntary contribution of up to 10GL to the Lower Balonne over a five-day period following extended dry periods.
This will increase the volume of water in the river at critical times and help deliver a range of community and environmental outcomes. This new commitment builds on Cubbie’s historical voluntary environmental, stock and domestic water contributions.
The particulars of the commitment have been developed with engagement from the relevant Commonwealth and Queensland authorities so that it will help meet their respective environmental water objectives. There is no compensation from the Commonwealth or Queensland governments for the voluntary contribution.
MIRA head of agriculture, Liz O’Leary said: “Cubbie is one of Australia’s premiere agricultural assets and aligns with our investment thesis for long-term sustainable farming operations.”
“MIRA has been an active investor in and manager of Australian farmland for more than 10 years and we understand the responsibilities that we have to local communities and investors. Shandong Ruyi has a long-term track record of sustainable operation of Cubbie and that is a commitment we share with them,” Liz O’Leary said.
“The Voluntary Water Contribution that we have announced is a meaningful commitment that will increase the volume of water in the Culgoa River and Lower Balonne intersecting streams, at the most critical times. It is also an example of the private and public sectors engaging with one another to develop new ways of helping to meet environmental objectives, while enabling productive use of the land at times of high flows,” Liz O’Leary added.
Cubbie Agriculture chief executive officer, Paul Brimblecombe said: "Under Ruyi’s ownership Cubbie has demonstrated a practice of active management of critical flows to benefit the environment and downstream users, so it’s very pleasing to find a likeminded partner in MIRA.
Ruyi Australia Group chief executive officer, Tony McKenna said: “MIRA is highly regarded internationally and has over a decade of experience in agriculture. Our joint venture provides certainty of ownership to Cubbie. Under the structure, the current management and operational team of Cubbie will remain unchanged and will be able to continue their good work.” (SV)
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