Centuria Agriculture Fund buys Sundrop Farms asset for $70m

Centuria Agriculture Fund buys Sundrop Farms asset for $70m

Sundrop Farms' Port Augusta site

A Centurial Capital Group (ASX: CNI) managed fund has acquired one of South Australia’s largest glasshouse assets, Sundrop Farms, for $70 million from the Morrison & Co Growth Infrastructure Fund.

Acquired by the Centuria Agriculture Fund (CAF), the asset is a 246-hectare site in Port Augusta, SA, and provides four five-hectare glasshouses that run on renewable energy sources.

The deal takes Centuria’s total agriculture assets under management to $421 million, and is supported by a 20 year triple-net lease to Sundrop Farms.

For CAF, Sundrop Farms will be the second agriculture asset in the portfolio, and comes after Centuria acquired a $177 million glasshouse estate in Warragul, Victoria.

The Sundrop Farms site comes with a 1.4 megalitre (ML) reverse osmosis plant, a 1ML desalination plant that processes 600ML of seawater annually, a 25ML storage dam, a packaging warehouse and a 12.5ha concentrated solar energy system that creates sustainable onsite renewable energy.

Sundrop currently grows truss tomatoes in its glasshouses that it distributes across Australia through Coles supermarkets.

Centuria joint CEO Jason Huljich says the ESG credentials of the site resonate well with the company’s ‘ongoing sustainability overlay within CAF’.

“We are pleased to partner with Sundrop who has developed world-first integrated sustainable farming technology, resulting in more predictable volumes of produce arising from the protected nature of its farming activities,” Huljich said.

“Centuria will continue to partner with experienced operators with a strong track record in agricultural innovation and this is one of a series of agricultural acquisitions we intend to deliver throughout FY23 and beyond, with the aim of growing CAF into one of Australia’s largest unlisted, sector-specific agriculture funds.

“This acquisition is another clear example of Centuria executing against its strategy of providing our unlisted investors with access to high quality investment opportunities in the fragmented agriculture sector and adding a new highly sought-after funds management vertical to the Centuria platform.”

Get our daily business news

Sign up to our free email news updates.

 
Unpacking equity: Finding your funding fit
Partner Content
Armed with a growing business and a great opportunity, a business owner’s next challe...
Australian Business Growth Fund
Advertisement

Related Stories

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 ...

Gold Coast's Stacked Farm to take vertical growing project national with $56m raise

Gold Coast's Stacked Farm to take vertical growing project national with $56m raise

Stacked Farm is looking to expand its automated vertical farming mo...

Flagship Mildura facility blazing a trail for Cann as harvest begins on first commercial crop

Flagship Mildura facility blazing a trail for Cann as harvest begins on first commercial crop

Fresh from receiving permission in March to start cultivating medic...

Charter Hall property trust announces trio of acquisitions and $242 million equity raise

Charter Hall property trust announces trio of acquisitions and $242 million equity raise

Three major acquisitions and a $242 million equity raise will bo...