This article is from the Australian Property Journal archive
PRIMEWEST has secured several new agricultural assets across Victoria and South Australia, including the Rolf Binder Winery and Vineyards in the Barossa Valley, for its agricultural fund that is expected to float on the ASX.
They have also picked up the Piscioneri Vineyards and Citrus Plantation in the Mildura, and Rullo Orchards farm in Shepparton.
The trio of assets were acquired for a total of circa $40 million and will see the recently established trust expand its total assets to $86 million.
Primewest also owns the 425 hectare Pinegatta property in Deniliquin, New South Wales, leased to Australia’s largest fruit and vegetable processor Kagome with a market capitalisation in excess of $2 billion, as well as the Mornington Peninsula asset Lamattina, a 385 hectare high value food producer.
Primewest last year acquired Vitalharvest’s external manager goFARM Asset Management, while taking an 11.8% stake that it has since built up to nearly 20%.
Primewest appeared set to use Vitalharvest as a springboard for a listed agricultural trust, but has been eyeing off a $350 million float of its agricultural trust and is on the lookout for almonds, tomatoes and vineyards assets.
Vitalharvest, meanwhile, is the subject of an ongoing takeover tussle between Macquarie and private equity firm Roc Partners.
Primewest director David Schwartz said the most recent acquisitions would see the agricultural trust expand its footprint into a third state and increase its exposure to the wine and fruit orchard sectors.
Rolf Binder Winery and Vineyards has five extensive vineyards including a significant crush facility, cellar door and restaurant, and was put to the market after 65 years of family ownership last year by brother and sister duo Rolf Binder and Christa Deans.
Rolf Binder Wines was last month bought by Accolade Wines, which will lease the property.
Rolf Binder
Piscioneri has table grapes and citrus, while Rullo Orchards both stone fruit and pear orchards.
“These new investments will provide the trust with increased diversification both in terms of geography, crop type and tenant covenant and assist in building the trust to a sufficient scale,” Schwartz said.
“One key aim of the trust was to focus on above average value sectors such as agricultural infrastructure and water, fruit, nuts and vineyards and these assets very much meet that objective.
“All the properties have a strong supply of water and where applicable water leases are available.”
Schwartz said Primewest had taken a counter-cyclical approach to investing in the agricultural sector, building a suite of quality agricultural investments leased to strong tenant covenants.
