Radicle goes nuts

UK agribusiness manager Radicle Projects has bought 70 allotments of the 2002 Timbercorp Almond Project for $885,640.

The London AIM listed fund has an investment strategy of investing in Australian agribusiness projects and is an investor in Queensland Paulownia Forests’ Australian Hardwood project that went into administration earlier this year.

The latest Radicle investment covers 17.5 hectares of land and about 4,250 mature almond trees.

Radicle chief executive officer Tim Bennett said the price was agreed on the basis of an analysis of anticipated future cash flows for the project, discounted by 17 per cent a year, net of a 30 per cent corporate tax.

“The first cash flows from the project are expected within three months,” he said.

In May this year, the agribusiness fund manager raised $37.4 million in the UK for investments in Australian projects.

Bennett said the Timbercorp investment was in line with the manager’s strategy to acquire high return cash generative secondary interests in established managed investment schemes.

He said there were further investments being negotiated at present.

“We have a number of projects in the pipeline and are presently negotiating further acquisitions in almonds and other products,” he said.

“Radicle will continue to acquire cash generative agribusiness interests in Australia at attractive rates of return.”