One Tree Hill Vineyard

Long term leasing

Leasing is a long-term formal arrangement that can be used to secure access to water entitlement for a specified period of time. It can be leased to receive the seasonal determinations and/or to access carryover capacity and in different trading zones.

We assist entitlement owners (Lessor) to maintain their entitlement and trade their allocation water to irrigators (Lessor) needing to secure water requirements, beyond their own water.

We provide ‘Long Term Lease’ offering long term entitlement security whilst guaranteeing a return to water entitlement owners. We can manage your lease agreements, allowing you to secure water in advance for a number of years at a known cost. If you are an entitlement holder, it will lock in an income for a number of years.

Learn more about Long Term Leasing

What is it?

A lease of water is similar to the lease of land in the terms that it is an agreement between two parties to lease an agreed parcel for a price and a term. Each state has various mechanisms to register a lease and all options should be discussed to allow an agreement to be formed.

Leases should all be established through a contractual arrangement which clearly specifies the rights and obligations of each party, the lease fees and the payment terms.

In addition to the contract, application forms need to be submitted to the relevant water authority to formalise the arrangement. The time to establish a formal lease depends on the jurisdiction however it generally takes a minimum of 4 weeks.

How it works?

The Lessee receives complete access to the entitlement for the duration of the lease, assumes all risks associated with seasonal determinations and pays all outgoings associated with leasing an entitlement.

The Lessee pays an amount per volume (ML) to lease an entitlement regardless of what the seasonal determinations are.

The seasonal determinations and carryover functionality associated with the entitlement is granted to the Lessee in exchange for paying a fee to the Lessor and all outgoings associated with the entitlement.

If a Lessee has leased 100ML of water entitlement for $200 per ML per annum, they will be $200 per ML regardless of whether the entitlement receives 100% seasonal determinations or 20%.

What else do I need?

Leases should all be established through a contractual arrangement which clearly specifies the rights and obligations of each party, the lease fees and the payment terms.

In addition to the contract, application forms need to be submitted to the relevant water authority to formalise the arrangement. The time to establish a formal lease depends on the jurisdiction however it generally takes a minimum of 4 weeks.

Contact Us

If you have any questions or would like to be contacted by one of our brokers, please send us an email with your details.