All roads lead to Roma for Centuria with $80m tomato glasshouse acquisition

All roads lead to Roma for Centuria with $80m tomato glasshouse acquisition

Australia's high-tech tomato glasshouses are ripe for the picking as far as property investor Centuria Capital Group (ASX: CNI) is concerned, with one of its funds making the second purchase of a major agricultural asset within the space of three months.

Centuria announced this morning it had acquired a 20-hectare tomato glasshouse in Guyra, NSW, tenanted by Costa Group (ASX: CGC) subsidiary Tomato Exchange which currently produces 12,800 tonnes of tomatoes at the site annually and has entered a new 15-year lease term.

Based on Costa's public reporting, this represents around half the hectares dedicated to tomato production for Australia's largest vertically integrated fresh producer grower-marketer, going into the hands of what is now the country's biggest large-scale glasshouse landlord. Last month Centuria estimated it owned a quarter of all large Australian glasshouses.

The buyer will acquire the site on behalf of its unlisted pure-play Centuria Agriculture Fund (CAF), taking its total agricultural assets under management (AUM) to $500 million. A purchase price was not reported, but based on valuation estimates a month ago the deal is likely worth around $80 million.

The asset includes a one-acre nursery, 65 megalitre dam, packing and distribution sheds and cool rooms.

Centuria stated it struck a deal for the asset with a family-owned investment office, although the Adelaide Advertiser reports it was bought from Costa Asset Management.

The deal comes within three months of the same Centuria fund acquiring one of South Australia’s largest glasshouse assets, Sundrop Farms, for $70 million from the Morrison & Co Growth Infrastructure Fund.

"Centuria has expressed its intention to strategically grow its platform across alternative real estate sectors, including agriculture," says Centuria joint CEO Jason Huljich.

"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."

Shares in CNI are up 2.35 per cent to $1.74 per share at 3.46pm AEDT.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Centuria Agriculture Fund buys Sundrop Farms asset for $70m

Centuria Agriculture Fund buys Sundrop Farms asset for $70m

A Centurial Capital Group (ASX: CNI) managed fund has acquired one ...

Morgan Stanley swoops on Centuria logistics assets in $362m partnership

Morgan Stanley swoops on Centuria logistics assets in $362m partnership

US funds management giant Morgan Stanley Real Estate has ramped up ...

Centuria Capital, MA Financial join forces in $223m acquisition of Perth’s Allendale Square

Centuria Capital, MA Financial join forces in $223m acquisition of Perth’s Allendale Square

Centuria Capital Group (ASX: CNI) has partnered with funds manager ...

Primewest offloads five shopping centres for $180m

Primewest offloads five shopping centres for $180m

Centuria Capital Group (ASX: CNI) subsidiary Primewest has announce...