Carbon And Renewables Farmland Fund (CARFF) is an agricultural landholding trust that seeks to purchase 2-3 properties with traditional revenue (grazing leases, farmland growth) and add incremental income in the growth markets of:
Carbon farming e.g. creating carbon credits via vegetation regrowth, planted trees
Renewables e.g. long term lease fees to wind/solar/battery projects
Biodiversity offsets e.g. preserving eucalypt trees for koala/glider/marsupial offsets
Upscale Directors will act as foundation investors in CARFF.
CARFF aims to develop the properties and annuity streams with an exit within 5-6 years.
CARFF is good for investors and the environment:
Returns: target 22%* p.a. ROIC, 15%* IRR
Distributions: target 2%* p.a. from year 3 or when carbon or renewable income begins
Multiple income sources seeking reduced risk, improving returns & value
Historical Australian farmland growth of 8.4%^ p.a. over last 20 years
Diversified alternate investment in real property, relatively uncorrelated to financial markets, residential/commercial/industrial real estate
Significant barriers to entry with complex regulation, few competitors
Managers with successful track record, valuable IP, foundation investors