Centuria secures Guyra glasshouse
Group agriculture assets grow to $500m1
- Centuria Agriculture Fund “CAF” secures third asset, growing to $320m AUM
- Asset located in NSW with 15 year lease to ASX listed Costa Group subsidiary
- Harness demand for fresh food driven by expanding middle class population, domestically and abroad.
Australasian real estate funds manager, Centuria Capital Group (ASX:CNI or “Centuria”) has secured a 20 hectare tomato glasshouse facility in Guyra NSW on behalf of its unlisted pure-play, Centuria Agriculture Fund (CAF) from a family-owned investment office.
The transaction is CAF’s third off-market glasshouse acquisition taking the total size of its glasshouses under management to c.74 hectares under-glass, worth $323 million with a WALE exceeding 18 years2, cementing Centuria as Australia’s biggest large-scale glasshouse landlord1.
CAF was launched at the commencement of FY23 as a new alternative fund vehicle for the Group and its growth has been extremely rapid, proving popular with both Centuria’s retail and private bank investment clients.
The acquisition increases Centuria’s total agricultural assets under management (AUM) to $500 million1.
Jason Huljich, Centuria Joint CEO, said “Centuria has 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. We have developed a healthy acquisition pipeline of assets which suit the CAF investment profile and expect total agriculture AUM to exceed $600 million during FY23 and continue to grow rapidly in FY24.”
The existing tenant, Tomato Exchange, has entered a new, extended lease on a 15 year term, triple-net lease with CPI-linked rent reviews. In addition to the 20 hectare glasshouse, the asset includes a one-acre nursery, 65 megalitre dam, packing and distribution sheds and cool rooms.
Tomato Exchange produces 12,800 tonnes of tomatoes from the asset each year and is a wholly owned subsidiary of ASX-listed Costa Group, Australia’s largest grower, packer and marketer of vegetable and fresh fruit. The parent company has long-standing relationships with major blue-chip fresh produce retailers across Australia including Coles, Woolworths, Aldi, Costco and Harris Farm.
Andrew Tout, Centuria’s Head of Agriculture, said, “In just over six months, CAF has secured three high value, off-market glasshouse assets worth more than $323 million. In recent years, the pandemic and other climatic and geopolitical events have highlighted the importance of food security and access to non-discretionary fresh produce.
“Australia is also reputed for being a ‘clean and green’ producer of high-quality agricultural products and demand for Australian grown fresh food and other quality agricultural products is forecast to increase materially over the next 10 years, driven by middle class population and income growth in both local and offshore markets.3”
Guyra is located 40km north of Armidale at the top of NSW’s Northern Tablelands in the New England region. The area provides a unique micro-climate with high sunlight levels in winter and cool summers.
CAF is an open-ended unlisted fund established in July 2022. CAF anticipates a distribution yield of 5.25 cpu4, monthly distributions5, a limited quarterly withdrawal facility6, daily unit pricing and a five year liquidity event. It has a minimum entry investment of $10,000. Applications for units in CAF must be made pursuant to a PDS which is available https://centuria.com.au/caf.
1. Post settlement of the Elm Str Glasshouse, anticipated to be March 2023.
2. Weighted Average Lease Expiry (WALE) by income as at 1 March 2023.
3. Source: CSIRO. Growth opportunities for Australian food and agribusiness.
4. The distribution rate is the distribution budgeted to be paid post settlement of the Elm St Glasshouse, which is anticipated to be March 2023, annualised (assuming equal monthly distributions). Actual distributions for subsequent months will be updated on Centuria’s website. Visit the Centuria website for full historical performance. The payment of distributions is not guaranteed and subject to the assumptions and risks in the PDS. Actual returns may differ from budgeted returns.
5. Centuria Property Funds Limited intends to pay monthly distributions and will be subject to the terms set out in the PDS.
6. Withdrawals are limited to the terms detailed in the PDS and are subject to the Fund’s liquidity policy and summarised on Centuria’s website. The ability of the Fund to offer quarterly withdrawals is not guaranteed.
Centuria Capital Group secures a $70.6 million industrial logistics facility in North Rocks, NSW, on behalf of US private investment firm, Starwood Capital’s, Last Mile Logistics Partnership (LMLP).
Centuria Capital Group has successfully exchanged conditional contracts to divest two adjoining industrial facilities located at 114 and 120 Old Pittwater Road, Brookvale NSW, which is anticipated to deliver a forecast 13.8% IRR to the assets’ closed-ended fund investors.