May 25, 2020

Stockhead: Alterra to give investors ethical access to water assets

Water is a hot commodity and developer Alterra has found a way to give investors ethical access to the resource.

Most ASX water investments are an ethical minefield as the battle between users, speculators and environmentalists grows more fractious each year.

Land developer Alterra (ASX:1AG) is offering a cleaner way to access the rising value of water rights via its avocado play in Western Australia (WA), says managing director Oliver Barnes.

Alterra’s investment is focused on the asset development stage, which provides our shareholders direct benefit from the uplift in value of land and water rights, Barnes said.

WA is more conservative using a system which ties water rights to land: sell the land and you are no longer eligible to hold a licence.

“The way to realise value from water entitlements in WA is through finding a more valuable land use activity” Barnes said.

In the case of Alterra that means taking broken down farmland and restoring it, partly by setting up water infrastructure that can responsibly capture water, to enable the development of high-value crops such as avocados.

Read the full report on Stockhead.