Rural Funds Group (ASX: $RFF) lease and partial sale announcement

Rural Funds Group (ASX: $RFF) has announced the entry into an agreement for the lease of two cropping properties, Mayneland and Baamba Plains, for 10 years, along with the sale of a 50% interest in the properties. The lessee is a company managed by The Rohatyn Group (TRG) on behalf of a joint venture between TRG and a global institutional investor. The transaction is expected to provide several benefits to RFF, including a reduction in exposure to operating earnings, confirmation of asset values, and capital from sale proceeds for debt reduction. Settlement is anticipated in early FY25, subject to various conditions precedent including Foreign Investment Review Board approval.

Rural Funds Management Limited (RFM) on the lease and partial sale agreement

Rural Funds Management Limited (RFM) is pleased to announce the agreement for the lease and partial sale of Mayneland and Baamba Plains properties. This transaction aligns with our strategy to optimize the portfolio and reduce exposure to operating earnings. The sale proceeds will be utilized for debt reduction, further strengthening our financial position. We are confident that the lessee, managed by The Rohatyn Group, will uphold the high standards of farm management, ensuring the continued success of these properties.

Summary of Rural Funds Group (ASX: $RFF) lease and partial sale announcement

Rural Funds Group (ASX: $RFF) has finalized an agreement for the lease of Mayneland and Baamba Plains properties for 10 years, along with the sale of a 50% interest in the properties to a company managed by The Rohatyn Group (TRG). The transaction is expected to reduce RFF's exposure to operating earnings, confirm asset values, and provide capital from sale proceeds for debt reduction. Settlement is anticipated in early FY25, subject to various conditions precedent including Foreign Investment Review Board approval. This strategic move aligns with RFF's goal of distribution growth and optimizing its portfolio. The management team at Rural Funds Management Limited (RFM) is confident that this agreement will contribute to the long-term success of RFF's agricultural assets.