Climate Asset Management buys 1,900ha Iberian nut orchard

Climate Asset Management has signed a deal to acquire to 1,900ha of farmland in Portugal and Spain planted with nut orchards. Financial details were not disclosed.

The brownfield asset is planted with almonds, walnuts and pistachio nut trees and was acquired from Borges International Group.

CAM deployed capital from its Natural Capital Fund, which is a closed-end vehicle that has a $1 billion target and has raised at least $325 million, reports affiliate title Agri Investor.

The HSBC and Pollination JV will transition the diversified nut orchard to a regenerative agriculture project alongside partner firm Bolschare Agriculture.

CAM said this latest deal becomes its third Iberian asset, having acquired a 400ha almond asset in 2022.

The regenerative agriculture practices changes to implemented on the firm’s latest asset include cover cropping, enhancing soil organic matter, improving water efficiency and reducing synthetic chemical use.

The fund manager also said “more than 10 percent of the land will be managed specifically for nature, to improve biodiversity and encourage native flora and fauna”.

CAM chief investment office Ben O’Donnell said in a statement: “We are excited about the opportunity to increase crop diversification within the portfolio with the introduction of pistachios and walnuts.

“We should be able to see the difference made by introducing regenerative practices against the historical performance of the farms. It is clear that there is a growing appetite among institutional investors for opportunities in natural capital to rebalance investment portfolios targeting nature positive and net zero.”

The firm made is first Australian investment in September 2023, acquiring 1,800ha of farmland in the Bundaberg region of Queensland, which was formerly used for high-intensity sugar cane production and will convert it into a macadamia orchard.

O’Donnell said CAM is continuing to raise and deploy capital from its natural capital strategy and has a “healthy pipeline” of projects in Australia, New Zealand, Europe and North America.