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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.
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