Alterra believes that significant ‘land use change’ opportunities exist in Australia for land assets with economic water.
Alterra’s business model focuses on working with landowners to reconfigure these assets with the aim to develop and manage investment -grade agricultural assets suitable for institutional ownership. Alterra invests across the asset development lifecycle covering asset origination, feasibility, development, and transitions to long-term ownership.
Opportunity and Investment Rationale
Western Australia is Overlooked
Undercapitalised and under utilised water and land assets with near-term development potential.
Counter seasonal production advantage coupled with world class provenance.
Underdeveloped local industry with emerging export potential.
Rapidly Expanding Asian Middle Class
Spending by Asia Pacific’s middle class is expected to grow significantly over the next 15 years, reaching $36.6 trillion which represents 57% of the purchasing power parity of the global middle class (Source: Kharas, Homi. 2017. “The Unprecedented Expansion Of The Global Middle Class”. Brookings Institution).
Asian middle class consumers seeking out reliable premium branded products.
Data driven agriculture is better at providing long-term risk adjusted returns.
Increasing automation, mitigating Australia’s high cost of labour and improving cost competitiveness.
Traceability, creating a direct connection between consumers and their source of food.
Agri Sector Under Owned by Investors
Institutional asset owners currently hold USD 131 trillion of assets globally.
Over last 20 years allocation to real estate, PE and infrastructure has risen from 4% to 20%.
Agriculture is an emerging and structurally developing asset class for institutions that provides opportunities, both economically and environmentally, for portfolio enhancement (Source: Global Pension Assets Study, Willis Tower Watson, 2018).