Agricultural real estate – Australia’s position

Investment in Australian agricultural real estate offers exposure to an asset class with strong underlying fundamentals.

AUSTRALIA

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  • Strategically located for key export markets exhibiting a rapidly growing middle class such as Aisa Pacific;
  • Strong reputation for producing sustainable, high quality bulk produce; and
  • Low sovereign risk profile.

LAND VALUE

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  • Historical steady growth in Australian land values showing maturity as an asset class; and
  • Strategic farmland locations in more reliable climatic areas are where property prices can provide greater long-term appreciation than average.

TECHNOLOGY ADVANCEMENTS

People ideas
  • Promotes efficiency at the operating level, leading to higher profitability for operators;
  • Better access to data and automation reduces waste; and
  • Allows capture and building of reliable data sets for use across the supply chain.

COMMODITY OUTLOOKS

Food on tray
  • Strong global demand continues to maintain Australian commodities in an advantageous position; and
  • Supply chain improvements and market access are opening up further high value markets that have the capacity to pay for premium bulk produce.

Risks associated with the agricultural sector

Centuria acknowledges that agricultural properties are subject to additional risks when compared to other commercial real estate investments due to its exposure to environmental and climate factors. However, the group will seek to mitigate these risks as much as possible through the due diligence process when reviewing investment opportunities by identifying assets that feature protected cropping, access to water rights and a focus on sustainability.

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