Southern hemisphere’s largest hydroponic glasshouse sold
Centuria has significantly boosted the value of its agriculture fund following a $168 million off-market deal for the southern hemisphere’s largest hydroponic glasshouse.
The facility at Two Wells (pictured, top), 50 kilometres north of Adelaide’s CBD, was offered by Fresh Country Farms of Australia, owned by Canada’s PSP Investments which is also a major shareholder in Perfection Fresh, which occupies.
On 166 hectares, there are five glasshouses supported by five storage dams, an evaporative dam, packing shed, fertigation and boiler room, office and staff amenities.
With irrigation infrastructure and a power plant supporting year long production, it produces snacking tomatoes, Quke baby cucumbers and other snacking fruit and vegetable varieties like broccolini and calypso mangoes.
The Centuria Agriculture Fund will hold it.
CAF hits $630m
With the deal, CAF will control six assets worth a total $629m.
The blended weighted average lease expiry is 16.2 years.
Including assets held by other funds, Centuria manages $820m of agriculture assets – the Perfection Fresh property contributing 25 per cent.
More than 150ha of this is glasshouse assets. Another 160ha is protected cropping agriculture (continues below).
Landmark glasshouse
The weighted average lease expiry of the Germantown Road, Two Wells, asset, is 17.4 years.
Glasshouses cover 43ha – more than any other asset of its type in the southern hemisphere.
“We have grown Centuria’s Agriculture AUM and capabilities as part of a deliberate strategy to seed alternative real estate classes that further appeal to our investors, are well supported by attractive themes and provide a log runway for further growth,” Centuria growth chief executive officer, Jason Huljich, said.
Perfection Fresh has long term contracts with major supermarkets, airlines and food service businesses, according to the executive.
Chief investment officer, Andrew Essey, added the trophy asset is the largest of its type in Australia and the southern hemisphere.
“Centuria will continue to seek convincing investment opportunities across the agricultural property market which harness persistent sector tailwinds,” he said.
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