The Public Sector Pension Investment Board is buying 89,085 megalitres of permanent water rights from Olam Orchards Australia Pty Ltd. for a total of A$490 million.

“Our agreement with Olam Orchards Australia is consistent with our strategy to partner with best-in-class operators who take the long-term view and to invest in high-quality agricultural assets globally,” said Marc Drouin, managing director and head of natural resources at PSP, in a press release. “It is also quite complementary to our existing permanent crop investments around the world and represents a unique avenue to add scale, particularly in Australia.”

In a separate transaction in Australia, PSP is buying about 12,000 hectares of almond orchards and related assets, which were previously leased to Olam Orchards.

Olam Orchards will continue to operate the almond orchards and associated water rights.

PSP and Olam Orchards are also entering into a tiered, revenue-sharing arrangement for the orchards, related assets and water rights for an initial period of 25 years, with an option to renew for an additional 25 years.

The transaction is expected to be complete in December 2019, subject to conditions.