Global law firm Norton Rose Fulbright has acted for agricultural investment specialist Laguna Bay on the successful first close of its Laguna Bay Agricultural Fund 1. The fund is supported by a number of experienced long term institutional investors, as well as Laguna Bay management, together contributing approximately $280 million.

Laguna Bay aims to unlock unrealised farmland value. Its new fund has a wide mandate in the agricultural sector and aims to invest in a portfolio of low-risk, high-quality agricultural assets in Australia and New Zealand.

The focus of the fund is on the generation of a stable and growing income yield, preservation of capital and potential for long-term capital appreciation. It will be diversified by sector, location and water sources, and will invest in a range of manager-operated, joint venture and sale-leaseback assets.

Agribusiness is an important part of Norton Rose Fulbright’s global infrastructure, mining and commodities sector focus.

Norton Rose Fulbright lead partner Fadi Khoury commented: 

“The fund's innovative design reflects the desire of many institutional and high net worth investors to maintain a long term exposure to real assets like agriculture, whilst providing a periodic liquidity review regime for liquidity.”

Laguna Bay co-founder and CEO Tim McGavin commented:

"Australia is a major agricultural producer and exporter, and one of the world's lowest cost producers in the key commodities we export. Yet it needs a significant amount of patient and aligned capital structured to suit agriculture. We believe the fund will be an important participant in Australian agriculture.”

Laguna Bay co-founder Tim Biggs commented:

"We worked with Norton Rose Fulbright and lead partner Fadi Khoury to develop an innovative fund structure that seeks to accommodate the requirements of institutional investors looking to gain exposure to this asset class”.

Laguna Bay is currently undertaking a second closing to admit an additional round of investors into the fund.