Rivco Locks in $11.7M Water Lease Deal With Select Harvests to 2031
Rivco secures $11.7 million water lease with Select Harvests subsidiary
Rivco Australia has executed a long-term water lease agreement with Kyndalyn Park Pty Ltd, a wholly owned subsidiary of Select Harvests Limited, valued at approximately $11.7 million over five years. The agreement, which commences on 1 July 2026, covers water entitlements valued at approximately $48.6 million and represents a material addition to the company’s contracted revenue base through to 2031.
The 5-year lease term provides Rivco with significant revenue visibility whilst delivering long-term water security to one of Australia’s leading horticultural operators. The agreement aligns with the company’s strategic objective of increasing the percentage of its portfolio committed to long-term lease arrangements.
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What are water entitlements and why do investors value them?
Water entitlements are tradeable rights to access water from regulated water systems in Australia. These rights function as a form of essential infrastructure asset that can be owned, leased, or sold separately from land ownership. Entitlement holders can either use the water themselves or, as in Rivco’s business model, lease the rights to agricultural operators who require reliable water access for irrigation and production.
The leasing model generates recurring revenue for Rivco whilst the underlying entitlement retains its capital value. In this transaction, the $11.7 million contract value represents the rental income Rivco will receive over the five-year term, whilst the $48.6 million entitlement value reflects the estimated market value of the underlying water rights being leased.
For investors, water entitlements offer exposure to a scarce resource with consistent demand from agricultural operators requiring long-term supply certainty. Lease agreements convert this asset into predictable revenue streams whilst maintaining ownership of the appreciating entitlement.
Portfolio reaches 82% leased from 1 July 2026
Following execution of this agreement, approximately 82% of Rivco’s portfolio by value is expected to be leased from 1 July 2026. This represents a material increase in portfolio utilisation and demonstrates progress against the company’s stated strategy of converting more of its water holdings into contracted lease arrangements.
Higher lease coverage reduces Rivco’s exposure to spot market volatility and improves revenue predictability across the portfolio. The company has consistently targeted increased leased water percentages as a core strategic objective.
Brendan Rinaldi, Chairman
“Rivco is pleased to have entered into an agreement with one of Australia’s leading horticultural operators. The agreement is consistent with the Company’s strategic objective of increasing its leased water percentage and further strengthens Rivco’s contracted revenue base, underpinned by continued strong demand for long-term water security.”
Key deal terms at a glance
| Term | Detail |
|---|---|
| Counterparty | Kyndalyn Park Pty Ltd (Select Harvests subsidiary) |
| Water Source | Mix of Water Entitlement Zones |
| Lease Term | 5 years |
| Commencement | 1 July 2026 |
| Total Contract Value | ~$11.7 million |
| Leased Entitlement Value | ~$48.6 million |
Select Harvests as counterparty
Kyndalyn Park Pty Ltd is a wholly owned subsidiary of Select Harvests Limited, a significant Australian horticultural operator. The counterparty’s established operational presence in Australian agriculture supports the revenue reliability of this contracted arrangement.
Securing a 5-year lease with a subsidiary of a listed agricultural operator demonstrates both the demand for long-term water security and the creditworthiness of Rivco’s contracted revenue base.
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Strategic positioning and outlook
This agreement strengthens Rivco’s contracted revenue base through to 2031 and demonstrates execution on the company’s stated strategy of increasing its leased water percentage. Management’s commentary highlights continued strong demand for long-term water security from agricultural operators, supporting the company’s leasing-focused business model.
With approximately 82% of the portfolio expected to be leased from mid-2026, Rivco has materially reduced its exposure to spot market pricing volatility whilst maintaining ownership of the underlying water entitlements. The execution of this material contract confirms demand for Rivco’s water asset portfolio amongst established horticultural operators requiring reliable irrigation supply.
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