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SINGAPORE-based Duxton Asset Management has emerged as the $16.25 million buyer of listed Valad Property Group's seven dairy farms in Victoria.
"We are looking at growing our dairy investments around the world," said Duxton's chief investment officer Desmond Sheehy.
"We see Australia as an opportunity to invest in everything but the strength of the Australian dollar is making it a bit difficult at the moment."
Duxton, which is partly owned by Deutsche Asia Pacific, manages about 90,000 hectares of global farmland.
The group bought the dairies, from a Valad managed trust, before the latest milk price war.
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Mr Sheehy told The Australian Financial Review that the purchase had proven to be a worthwhile investment despite recent price volatility.
"We purchased them at what was a good price and they have since shown to be good value investments," he said. "We think dairy is very attractive in the long term and owning the means of production is an important pillar in our strategy to increase our direct exposure to agriculture globally."
Corporate interest in dairy has been strong in recent years though the retail milk war has raised profitability concerns. Mr Bayard said Victoria was more protected from milk price fluctuations because the bulk of its product was exported.
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