Duxton Water Limited (“Duxton Water”) was incorporated in April 2016 and presents an opportunity to invest in Australian Water Entitlements (also known as water licenses or water rights) – perpetual rights to Australia’s limited water supply – a key production input into a number of agricultural industries.
Water scarcity is a growing issue. Access to fresh water is a key limiting factor of production in Australian agriculture, which currently makes up approximately 60% of Australia’s total water consumption. Moreover, future water availability is likely to be further constrained by a growing global population, impacts of climate change and government buybacks of water entitlements for environmental purposes. The increasing scarcity of water, coupled with the rising demand for it is likely to be a key economic driver underpinning the water market.
The majority of Duxton Water’s returns are expected to be generated via Water Entitlement leases with primary producers. These leases are structured in a similar manner to commercial leases where the asset title is held by the lessor and fixed annual rent is paid by the lessee. As such, Duxton Water presents investors with an asset that produces regular and predictable revenue streams and is uncorrelated with traditional asset classes. The Water Entitlements may potentially generate capital appreciation as they are held over a long term horizon.
Chaired by Ed Peter, former Head of Deutsche Asset Management Asia Pacific, Middle East & North Africa, Duxton Water’s Board comprises of a team of four highly experienced members with a combined 72 years of experience in the agriculture industry and a combined 47 years of experience in Australian water markets.
Duxton Water presents opportunities to both buy and sell water, as well as invest.