Duxton Water is an investment company which owns and manages a portfolio of water entitlements and thus offers investors a direct exposure to the Australian water market. Duxton offers a range of water supply solutions including long term entitlement leases, forward allocation contracts and spot allocation supply to the Australian agriculture. As a result, it generates regular and predictable revenue streams via water entitlement leases with primary producers located across Australia. However, the company’s main operations are focussed on the Southern Murray Darling Basin region. The target for Duxton Water is to have 70-80% of the entitlements in long-term leases with irrigators. The company will benefit from drought conditions that are affecting regional areas but it will also suffer from too heavy rainfalls for a longer period of time. In general, drought conditions across Australia continue to cause problems for regional areas with farmers left with little choice but to buy the necessary water which has pushes up the price of water rights. Currently, Duxton Water is exclusively listed on the Australian Securities Exchange and has no intention for a secondary listing in another country. However, it is still possible to buy the shares as a foreign investor, but this is also associated with higher costs.
Australia – Water Entitlements / Water Rights