- 12 year triple-net lease from settlement to Lachlan River Almonds
- Orchard is underpinned by water security and a quality operator
- Located in Riverina, NSW
Today, Primewest has announced the acquisition of an almond orchard in Riverina, NSW. The area is about 500 kilometres southwest of Sydney, home to a number of other farms, and is well known for its wineries.
The acquisition comes as Primewest launched a new wholesale unlisted agricultural fund called Primewest Agricultural Trust No. 2.
The property was acquired for $54 million, and provides a 12 year triple-net lease from settlement to Lachlan River Almonds.
Situated on 524 hectares, 434 hectares is well established, productive almond trees at the right stage of maturity.
Water entitlements were noted as 7,800 megalitres, comprising 7,100 megalitres from Lower Lachlan groundwater and 700 megalitres from Lachlan Regulated River Water Source.
Primewest will seek to raise $34 million from wholesale investors to fund the acquisition of ‘Moora’ Almond Orchard located in Hillston, NSW. The almond farm is recognised as the ‘jewel in the crown’ of the Western Rosella farming portfolio and one of Australia’s
foremost agricultural offerings.
Primewest Agricultural Trust No. 2 has a 12-year initial WALE by income and provides an initial cash distribution of 7.0% p.a. (paid monthly) subject to the assumptions and risks set in the Fund’s Information Memorandum. The fund is open to investment by wholesale investors only.
Primewest Director, David Schwartz, said the launch of the company’s second wholesale agricultural trust further diversifies the agricultural portfolio by both crop type and geographical location.
“We have taken a counter-cyclical approach to investing in the agricultural sector, building a suite of quality agricultural investments that benefit from strong water supply.”
David Schwartz, Primewest Director
Mr Schwartz continued, “The strategy has resonated well with our long-standing investor base. Moora is underpinned by water security, paired with the underlying high-quality land and quality operator. This is exactly what our investors are seeking.”