- The asset provides 12 hectares of protected cropping within a 59 hectare land parcel.
- Located near the town of Virginia, in an area known as the 'food bowl of South Australia'.
- The asset continues to be operated by P'Petual Holdings.
Six hectares of glasshouses and six hectares of double skinned plastic greenhouses in South Australia have been acquired by Centuria Capital Group (ASX:CNI) for its open-ended unlisted Centuria Agricultural Fund (CAF).
The $21.5 million greenhouse and glasshouse acquisition in the Adelaide Plains is located at 234 Carmelo Road, Riverlea Park, circa 38 kilometres north of the Adelaide CBD near the town of Virginia, in an area known as the ‘food bowl of South Australia’ due to its extensive horticultural production.
The asset includes 12 hectares of protected cropping within a 59 hectare land parcel. The acquisition also includes development application (DA) approval for an additional four-hectare glasshouse, providing a value-add opportunity to further enhance CAF’s size and footprint in the agricultural real estate sector.
The facilities have capacity to produce approximately 1,488 tonnes of tomatoes, 136 tonnes of cucumbers, 517 tonnes of eggplants, and 43 tonnes of capsicums per annum.
The asset also includes large packing sheds with onsite energy, fertigation and reverse osmosis infrastructure as well as a circa 40ML3 dam and 205ML3 bore water licences.
The asset’s sustainability credentials extend to robust water management through recycled rainwater and surplus water, recycling carbon emissions, and integrated pest management via the introduction of “good insects” into the greenhouse facilities to combat unwanted insects.
P’Petual Holdings continues to operate the asset. It provides strong lease covenants including a 10-year triple-net lease with annual rent escalations. P’Petual is one of South Australia’s largest vegetable growers of tomato, mini-cucumber, eggplant, and jalapeno/mini capsicum varieties.
The Adelaide Plains greenhouse and glasshouse acquisition expands Centuria Agricultural Fund’s portfolio to four assets worth $351 million with a 17 year weighted average lease expiry (WALE) and 100% occupancy.
“The Adelaide Plains acquisition is aligned with CAF’s investment strategy to acquire high-quality agricultural assets, leased to reputable operators with strong ESG credentials and in higher revenue producing sectors such as protected cropping,” said Centuria joint CEO, Jason Huljich.
“Centuria is excited about this recent acquisition, which provides an exceptional opportunity for P’Petual to scale-up and implement operational efficiencies. It is another great example of Centuria partnering and collaborating with seasoned agricultural innovators,” added Centuria head of agriculture, Andrew Tout.
The fund was launched at the start of FY23 as a new alternative fund vehicle for Centuria and its growth has been extremely rapid, proving popular with both retail and private bank investment clients.