Strategic Acquisition of Assets
Laguna Bay has a diverse range of contacts and a good reputation across the agricultural sphere, offering access to a proprietary deal flow of opportunities that are not otherwise available in the open market. We have an intelligent approach to the evaluation, structure and acquisition of assets while respecting and embracing the local specifics of vendors and managers.
Australia is recognised as one of the worlds largest and most stable food producers and we believe that Australian farmland is conservatively priced on a global farmland value comparison.
We follow a strict process in selecting assets to invest in.
- Strategic selection of sector and geographical location.
- Disciplined and structured farm, financial, environmental and legal due diligence on assets.
- Conservative and considered financial modelling and budgeting based on local knowledge and backed up by independent third party verification.
We have also developed a number of flexible and non-traditional strategies to deal with the family based ownership complexities traditionally associated with the acquisition of agricultural enterprises.
These include but are not limited to the following:
- Leaseback arrangements with vendors.
- Vendor’s maintaining ownership/custodianship of the family homestead.
- Offering employment opportunities for vendor’s family in Laguna Bay enterprises.
Sustainable, Profitable Management of Assets
Laguna Bay provides a full service agricultural funds management vehicle, responsible for both asset and operational management. Our management techniques are scalable through a tight management hierarchy, employing the best and most progressive farm managers, and maintaining a stringent ongoing process of yield analysis, benchmarking, human capital management and strategy review.
Through research and the adoption of proven technology, we have and will continue to achieve superior yields and capital growth on assets under management.
We look after all aspects of the ongoing management of the operation of individual assets including:
- Research and technology investment.
- Plant and equipment.
- Risk Management associated with climate/weather patterns.
- Crop/pasture rotational plans.
- OH&S and regulatory compliance.
- Marketing including long term fixed price off-take agreements.
Best practice in environmental, social and governance.
- Recruitment and retention of the best available human resources.
Our track record of achieving exceptional yields will be further enhanced through our operational management strategy on additional aggregations of assets:
- Analysis and conversion of suitable pasture land into grain production.
- Sizable operating aggregations allow for optimisation of management, equipment and infrastructure costs.
- Superior negotiation/bargaining power with suppliers and buyers.
- Economies of scale.
We partner with investors who understand the importance and unique benefits of agricultural investment.
Scaleable, Sustainable, Consistently
Managed Agricultural Assets.
Laguna Bay is a specific purpose funds group providing institutional investors with agricultural exposure.
Laguna Bay manages the evaluation, acquisition, development, and management of agricultural assets. Traditionally, institutional agricultural investment has struggled to achieve investment grade returns. This is primarily due to variability of return, issues relating to diversification & scale, and family farming cultural differences but is often the result of the institutions funding the wrong mangers paying too much for the wrong assets with the wrong incentives in place.
Our goal is to partner with institutional investors to add superior real inflation adjusted returns.
We feel strongly that non-financial real assets, being primarily represented by Agriculture, will comprise an increasing component of investment portfolios.
We partner with investors who understand the importance and unique benefits of agricultural investment, namely:
- Strong Fundamentals
Demand for land and soft commodities is being driven by several strong and real macro trends.
Stable returns during times of uncertainty and recession.
- Inflation Hedge
Agricultural assets offer an excellent natural hedge against inflation.
- Low correlation with other Asset classes
Agricultural land has outperformed traditional asset classes over the long term.
- Under-owned Asset class
Farmland is an under-invested asset class due to difficulty in acquiring and successfully managing assets.