This article is from the Australian Property Journal archive
ASX-listed Centuria Capital has snapped up an Adelaide Plains greenhouse and glasshouse facility, spending $21.5 million to add the asset to its open-ended unlisted Centuria Agriculture Fund (CAF).
Located at 234 Carmelo Road, Riverlea Park in South Australia, the asset includes 12-hectares of protected cropping, six-hectares of glasshouses and six-hectares of double skinned plastic greenhouses within the 59-hectare land parcel.
“The Adelaide Plains acquisition is aligned with CAF’s investment strategy to acquire high-quality agricultural assets, leased to reputable operators with strong ESG credentials and in higher revenue producing sectors such as protected cropping,” said Jason Huljich, joint CEO at Centuria.
The facilities at the property have the capacity to produce approximately 1,488 tonnes of tomatoes, 136 tonnes of cucumbers, 517 tonnes of eggplants and 43 tonnes of capsicums per annum.
With the asset also including packing sheds with onsite energy, fertigation and reverse osmosis infrastructure and a circa 40ML dam and 205ML bore water licences.
This latest acquisition will grow CAF’s portfolio to four assets worth $351million with a 17-year WALE and 100% occupancy.
The acquisition also includes DA approval for a further four-hectare glasshouse.
The asset will continue to be operated by P’Petual Holdings, with the property providing strong lease covenants including a 10-year triple-net lease with annual rent escalations.
“Centuria is excited about this recent acquisition, which provides an exceptional opportunity for P’Petual to scale-up and implement operational efficiencies,” said Andrew Tout, head of agriculture at Centuria.
“It is another great example of Centuria partnering and collaborating with seasoned agricultural innovators.”
The acquisition comes after Centuria Capital doubled its Starwood Capital logistics fund’s assets under management to $147 million and is eyeing lucrative rental reversions with the off-market purchase of a North Rocks industrial facility last November.
