Centuria takes over $444m agriculture fund
Centuria Capital Group has bought Arrow Funds Management, the responsible entity behind the unlisted Arrow Primary Infrastructure Fund.
The off-market deal gives Centuria control of 22 agriculture and horticulture focused investments worth a total $444 million with a blended weighted average lease expiry of 12.7 years.
Baida, Nutrano, Pace Farms, Select Harvests and SunPork are amongst the highest profile tenants.
The portfolio also includes nut and fruit orchards, vineyards and an organic glasshouse.
Assets are spread across New South Wales, Victoria, South Australia and the Northern Territory.
Centuria bolsters value of agriculture AUM
As part of the takeover, all operational AFM staff including chief executive officer, Andrew Ashbolt, portfolio manager, Brad Dichiera and accountant, Sandra Schwartz, will stay.
“Our expanded management team will remain focussed on maximising the value of APIF’s Boombera Park macadamia property for the benefit of the fund’s unitholders,” Mr Ashbolt said.
“Macadamia prices have increased significantly over the last 2 years and are expected to return to their long-term average for this season,” according to the executive.
“The outlook for the macadamia industry is positive and Boombera Park has had a good flowering and nut set this season,” he added.
“Our expanded management team will continue to prioritise the leasing or sale of this property to a third party on an accretive basis”.
Centuria’s agriculture platform will rise to $1.3 billion – up 86 per cent this financial year.
Last week we reported the asset manager bought the southern hemisphere’s largest glasshouse facility, north of Adelaide.
Including other sectors, it manages real estate worth over $20b.
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