Centuria boosts agricultural footprint with $168m acquisition of Australia’s largest glasshouse

Real estate funds manager Centuria Capital Group (ASX: CNI) has added Australia’s largest glasshouse, leased to national produce giant Perfection Fresh, to its growing portfolio of agricultural assets in a $168 million deal with Fresh Country Farms of Australia.

The acquisition of the 43ha glasshouse facility in Two Wells, north of Adelaide, boosts Centuria’s agriculture assets under management (AUM) in Australia and New Zealand to $820 million, up 25 per cent this financial year.

The South Australian facility has been acquired by the group’s specialist unlisted Centuria Agriculture Fund which has now grown to $629 million in AUM across six assets.

Centuria Agriculture Fund, which was launched in 2022 with an initial seed investment of a $177 million glasshouse asset in Warragul, Victoria, has become Australia’s largest owner of real estate glasshouse infrastructure in the past three years.

The South Australian acquisition has expanded Centuria’s agricultural portfolio to more than 150ha of glasshouse assets and over 160 hectares of protected cropping agriculture.

The off-market deal was struck with Fresh Country Farms of Australia, an agricultural landlord that owns about 70 farming assets across Australia from glasshouses to high-performing permanent crops.

“We have grown Centuria’s Agriculture AUM and capabilities as part of a deliberate strategy to seed alternative real estate asset classes that appeal to our investors, are well supported by attractive themes, and provide a long runway for further growth,” says Jason Huljich, Centuria’s joint CEO.

“Centuria is leading domestic institutional agriculture real estate investment with a bias towards sustainable farming infrastructure that aims to deliver high produce yields to meet rising demand from Australia’s expanding population.

“This strong track record is credited to partnering with experienced, well-established operators.”

The Two Wells greenhouse produces snacking tomatoes, Quke-branded baby cucumbers and other snacking vegetable varieties by operator Perfection Fresh.

The privately-owned fresh produce businesses, one of Australia’s largest, supplies major supermarkets, airlines and food service businesses through long-term contracts.

The property, located 50km north of Adelaide, has been acquired with a 17.4-year triple-net lease, which Centuria says makes all maintenance and upkeep of the property the responsibility of the operator and reduces overheads for the fund.

“It’s a pleasure to welcome Perfection Fresh to the Centuria fold,” says Andrew Essey, Centuria’s chief investment officer.

“It is one of the country’s leading, premium-quality fresh produce suppliers, delivering exclusive fruit and vegetable brands such as Broccolini, Qukes and Calypso Mangoes.

“We are immensely proud to secure the Two Wells glasshouse facility, a trophy asset being the largest in Australia and the largest in the southern hemisphere.

“Centuria will continue to seek convincing investment opportunities across the agricultural property market, which harness persistent sector tailwinds.”

The South Australian facility comprises five glasshouses, five storage dams, an evaporation dam, packing shed, fertigation and boiler room, and office and staff amenities buildings within a 166ha site.

The property has extensive irrigation infrastructure and onsite electrical generating plant equipment that supports year-round production.

"This acquisition delivers full diversity of Australia’s top tenant covenants and strengthens our geographic spread across the country’s premier glasshouse growing regions," says Andrew Tout, Centuria’s head of agriculture.