In a strategic move, Centuria Capital Group recently acquired a state-of-the-art greenhouse and glasshouse facility in Adelaide Plains, South Australia, for a significant A$21.5m. This acquisition, situated at 234 Carmelo Road, Riverlea Park SA, spans 12 hectares of protected cropping within a 59-hectare land parcel.
The facility boasts six hectares of advanced glasshouses and an additional six hectares of double-skinned plastic greenhouses, demonstrating Centuria’s commitment to innovative and sustainable farming practices. Furthermore, the asset includes expansive packing sheds and features on-site energy, fertigation, and reverse osmosis infrastructure, along with valuable licenses for water rights.
One notable aspect of the acquisition is the development application approval for an extra four-hectare glasshouse, presenting a lucrative opportunity for Centuria Agriculture Fund (CAF) to expand its footprint in the agricultural real estate sector. This aligns seamlessly with CAF’s investment strategy, emphasizing high-quality agricultural assets leased to reputable operators.
P’Petual Holdings, a leading horticulture group, currently operates the acquired asset, holding a 10-year triple-net lease with annual rent escalations. Jason Huljich, Centuria joint CEO, emphasizes the strategic fit of this acquisition within CAF’s overall investment strategy. The move is set to enhance the fund’s size and influence in the agricultural sector.
Andrew Tout, Centuria head of agriculture, highlights how the investment not only benefits Centuria but also provides P’Petual Holdings with the opportunity to scale up operations and implement operational efficiencies. This collaborative approach fosters growth and sustainability within the agriculture sector.
As of July 2022, CAF, established as a new alternative fund vehicle, owns four assets valued at A$351m, boasting a remarkable weighted average lease expiry of 17 years. This underscores the fund’s commitment to long-term, sustainable investments that contribute positively to the agriculture industry.
Centuria’s acquisition of the advanced greenhouse facility in Adelaide Plains is a pivotal step toward reshaping the landscape of sustainable agriculture. The focus on high-quality assets, innovative technologies, and collaborative partnerships positions Centuria Agriculture Fund as a key player in driving positive change within the industry. This strategic move not only strengthens Centuria’s portfolio but also fosters sustainable practices and operational efficiency, setting a new standard for agricultural investments.
