Duxton Water sells water entitlements to Australian government for $121.3 million

STIRLING: Duxton Water announced Thursday it has agreed to sell 30,614 megalitres of water entitlements to the Australian Federal Government for approximately $121.3 million.

The sale is part of a government initiative to enhance environmental water flows in the Murray-Darling Basin.

The transaction, conducted at a premium to Duxton Water’s current net asset value, includes high security and general security water entitlements across several regions and river systems in New South Wales and Victoria. The sale is part of the “EOI 2 – Large Portfolios of Water” tender under the Restoring Our Rivers Act, which aims to recover 450 gigalitres of water to improve environmental outcomes and support local communities.

“This strategic sale aligns with our commitment to sustainable water management and supports the government’s efforts to ensure a healthy, sustainable river system for future generations,” the company said in a statement.

The proceeds from the sale will be used to settle $19 million in pending water entitlement acquisitions and to reduce the company’s debt. Following the transaction, Duxton Water’s entitlement portfolio is expected to total 60.9 gigalitres, valued at approximately $294.4 million based on January 2025 valuations.

Settlement of the transaction is pending water authority approvals, with completion expected 10 business days after approvals are received.

Duxton Water, based in Stirling, South Australia, focuses on water entitlement investments and sustainable water management. The company believes the sale will positively impact its future profitability and provide flexibility to rebalance its portfolio.