Australasian real estate fund manager Centuria Capital Group has paid $21.5million for a 12ha greenhouse and glasshouse facility within South Australia’s Adelaide Plains.
The 6ha of glasshouses and another 6ha of double-skinned plastic greenhouses have the capacity to produce about 1488 tonnes of tomatoes, 136 tonnes of cucumbers, 517 tonnes of eggplants and 43 tonnes of capsicums each year.
Centuria bought the asset at 234 Carmelo Road, Riverlea Park—about 30km north of downtown Adelaide—from P’Petual Holdings, one of the state’s biggest vegetable growers. Under the deal P’Petual Holdings will continue to operate the facility.
The acquisition brings to four the number of assets within the open-ended, unlisted Centuria Agriculture Fund (CAF), with a combined value of $351 million. All are fully occupied.
The facility includes packing sheds, onsite energy, fertigation (the process of supplying dissolved fertiliser to crops through an irrigation system), and reverse-osmosis infrastructure.
“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,” Centuria’s joint chief executive Jason Huljich said.
Centuria Agriculture Fund was launched in July 2022.
The diversification to alternative real estate has proved to be a deft move, with Centuria telling The Urban Developer in August last year it was targeting a $1-billion portfolio.
Centuria head of agriculture Andrew Tout said the acquisition provided “an exceptional opportunity for P’Petual to scale-up and implement operational efficiencies.”
The acquisition of the Carmelo Road facility includes development approval to build another 4ha glasshouse in what is known as the food bowl of South Australia.