An investment fund has emerged as Australia's biggest large-scale glasshouse owner after buying another big tomato farm, this time in NSW.
Subscribe now for unlimited access.
or signup to continue reading
The Centuria Agricultural Fund is now landlord of three high-profile farms after earlier buys in South Australia and Victoria.
This time it has bought the Costa Group's 20-hectare tomato glasshouse development in Guyra.
This latest purchase increases the Sydney-based group's total agricultural assets under management to $500 million.
Together, the three modern facilities produce about 34,000 tonnes of tomatoes a year.
It is the fund's third off-market glasshouse acquisition taking the total size of its glasshouses under management to 74 hectares under-glass worth $323 million.
Centuria famously paid $70 million for the much lauded eco-friendly hydroponic tomato venture near Port Augusta late last year.
It bought Sundrop Farms' 20 hectare glasshouse farm on a 20-year sale and leaseback deal.
In June last year, Centuria secured a $177 million glasshouse estate in Warragul, Victoria on a lease-back deal to Flavorite - reputedly the largest glasshouse producer of fresh fruits and vegetables in Australia.
The fund is believes to have paid about $80 million for this latest buy in NSW.
The existing tenant, Tomato Exchange, has entered an extended lease with the investment fund.
As well as the 20ha glasshouse, the property includes a one-acre nursery, 65 megalitre dam, packing and distribution sheds and cool rooms.
Tomato Exchange produces 12,800 tonnes of tomatoes each year and is claimed to be the biggest of its type in the southern hemisphere.
It was a wholly owned subsidiary of ASX-listed Costa Group.
Centuria joint chief executive Jason Huljich said Centuria had expressed its intention to strategically grow its platform across alternative real estate sectors, including agriculture.
"We believe strong demand fundamentals will drive continued investor interest in agricultural real estate and Centuria will continue to seek high quality assets, leased to reputable operators with strong sustainability credentials in high revenue producing sectors such as protected cropping," he said.
The Sydney-based Centuria Capital Group is an ASX-listed specialist investment manager with more than $21 billion of assets under management.
Centuria's agricultural fund late last year bought Sundrop Farms' 20 hectare glasshouse farm on a 20-year sale and leaseback deal.
The much lauded eco-friendly hydroponic tomato venture near Port Augusta has sold for $70 million.
Sundrop Farms opened with great fanfare in 2016 at a cost of between $150m-$200m with SA government support of about $6m.
World-leading technology is used to grow 15,000 tonnes of pesticide-free, carbon neutral tomatoes a year.
The farm uses a 115 metre-high solar tower to produce energy to power the plant growing systems and to heat and cool the greenhouses as required.
It has 23,000 mirrors (2m x 1m) pointed at it.
Water comes from the Spencer Gulf, and is desalinated using a cutting-edge thermal desalination plant.
In June, Centuria secured a $177 million glasshouse estate in Warragul, Victoria.
It sold with a 20-year lease back to Roc Partners' Flavorite, which produces hydroponically grown tomatoes and other vegetables to the big supermarkets.
Make sure you are signed up for our breaking news and regular newsletters
Chris McLennan
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
