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Tandou Water
Tandou has a broad portfolio of water entitlements, significant experience in water markets and an educated and realistic understanding of current and future prospects for the water sector.
These factors, together with our recognition of the strategic importance of water, have encouraged us to aim to become the vehicle of choice for water investments in Australia.
Investment strategy
Tandou is using its expertise and understanding of the fundamentals of the water sector to become the key holder of water entitlements on the connected Murray Darling Basin.
Tandou aims to become the vehicle or choice for potential water investors and ultimately Australia’s leading provider of water supply solutions for the:
agricultural, urban,
industrial; and
environmental sector
A unique water investment model
Those who are looking to invest in water via Tandou will become part of Tandou’s unique water investment model.
Tandou invests in water entitlements for long term capital growth while retaining the option of using the allocation from these entitlements to:
- sell water allocations when demand and hence price is high; or
- facilitate crop production when demand and prices are low comparative to commodity returns.
Ultimately this is a win win for investors, offering a secure long term return through maximising shorter term opportunities.
Tandou’s water entitlement portfolio and performance
Tandou’s experience in and understanding of the water market is underpinned through its own water entitlement portfolio and its performance over time, as is illustrated in the following tables.
Our diversified portfolio includes significant water entitlements across the Murray, Murrumbidgee and Goulburn systems. At Tandou we understand the variations in entitlement quality and the impact these can have on short and long term returns.
Tandou’s water entitlements, as per directors' valuations at 31 December 2010 based upon independent valuations performed at 31 December 2010, were as follows:
| Valley | Category | Entitlement (ML) |
| Lower Darling | High Security | 438 |
| Lower Darling | General Security | 19,103 |
| Murrumbidgee | General Security | 9,753 |
| NSW Murray | High Security | 92 |
| NSW Murray | General Security | 3,492 |
| Goulburn | High Reliability | 57 |
| Vic Murray | High Reliability | 4,932 |
| Total | 37,867 | |
The following table details the recent historical performance of Tandou's water operations and illustrates our significant water investment.
| FY2008 | FY2009 | FY2010 | |
| Water Entitlements at Valuation (million) | $30.5 | $30.4 | $37.7 |
| Water Entitlements (ML) | 31,617 | 32,386 | 37,867 |
Contact us today to discuss water investment opportunities with one of our water experts.
Conversion factors
- 1 megalitre (ML) = 1,000,000 litres (L)
- 1 gigalitre (GL) = 1,000 ML
- 1 acre foot (AF) = 1.223 ML
- Volume of Sydney Harbour (Sydharb) ~ 500 GL
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