Landmark, an AWB company, today announced a further expansion of its rural finance business, by arranging to acquire the $160 million rural lending portfolio from Adelaide Bank.
The acquisition will take the value of the loan book managed by Landmark to above $2 billion, and continue its strategic growth in the rural finance market. The acquisition is expected to be completed on September 15.
General Manager, Financial Services, Colin Taylor, said there was clear opportunity for further growth of the portfolio as part of the Landmark rural finance business.
“Landmark has become one of the fastest growing rural and regional finance providers, and this further demonstrates our strategy in action,” Mr Taylor said.
“This represented a rare opportunity to acquire an established loan book with a good credit risk and geographical spread. It is a natural fit with the Landmark business, and is aligned with our growth strategy in the rural finance market. We understand this business well, we know what the customer wants and we are perfectly suited to provide them with competitive and tailored finance solutions,” Mr Taylor said.
The portfolio is spread across SA, WA, NSW and Victoria, and the acquisition includes eight experienced agribusiness staff from Adelaide Bank who will move into the Landmark business.
The new addition to the loan book will be supported by the Rural Trust funding platform. AWB established Rural Trust after the acquisition last year of the “Landmark-managed” loan book from Rabobank. Rural Trust provides a cost competitive funding base for the AWB rural finance business, allowing for a new range of competitive products which have been rolled out over the past twelve months.
Mr Taylor said Adelaide Bank customers can expect minimal change to their daily business operations.
“In the medium to long term, we will offer our new clients a unique business proposition, with our specialised rural finance offering, as well as access to a broader range of Landmark and AWB products and services to help meet their business needs,” Mr Taylor said.
“Landmark will continue to look for opportunities to further expand our finance offering to primary producers both through organic growth, and, where it meets our criteria, strategic growth through acquisitions such as this,” Mr Taylor said.
- Acquisition in line with Landmark’s targeted growth strategy in Rural Finance
- Landmark-managed loan book now exceeds $2 billion
- Landmark-managed loan book grown by $900 million in past two years
- Landmark able to offer better proposition to these customers.
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