The New Zealand Superannuation Fund has made its first investment in Australia's farming sector by taking a stake in a beef stud business.
It has bought into the Palgrove stud for an undisclosed sum.
It is the Fund's first overseas farm investment, it already owns 32 farms in New Zealand, and it takes its agricultural investments to about $340 million, nearly 1 percent of its $35 billion investment fund.
The Palgrove business has operations in Queensland and New South Wales, with about 5,000 cattle, and is well known for Charolais and Ultrablack cattle studs.
It will continue to be run by the Bondfield family, who founded it more than 40 years ago.
NZ Super Fund portfolio manager Neil Woods, said it intends to invest more in Palgrove to help it expand.
"The arrangement is we will grow the business through the purchase of land and the development of new technology to increase it size and value. We could invest another $100 million in this business in the medium term."
He said Palgrove was a first step in rural investments in Australia and the fund was on the look out for other agriculture investments.
The stud's founder David Bondfield said the fund had the right approach to investment in the sector.
"This partnership with NZSF gives the Palgrove business the capacity to grow its cattle numbers to meet increasing demand from our clients. It also enables us to accelerate genetic development."