The NZ Super Fund made its first offshore farm investment, a stake in an Australian beef stud with locations in Queensland and New South Wales.
The super fund didn't disclose the sale price, but said investing in Palgrove will bring its rural land portfolio to 33 farms worth about NZ$340 million.
Chief investment officer Matt Whineray said Palgrove was a high quality, successful business that complemented the existing investment portfolio.
"We are pleased to make the fund's first offshore investment under our rural land strategy. We continue to see rural land as an attractive long-term investment and a good diversifier for our portfolio," he said.
Data from the Australian Bureau of Statistics highlights opportunities for institutional investors; during 2015-16, the gross value of Australian agriculture increased by 6% to $56 billion.
NZ Super has NZ$35.7 billion in assets under management.