Centuria managed Primewest has added six South Australian vineyards to the Agricultural Trust No 1 (PWAT1).
The $8.2 million off-market sale and leaseback deal is with Accolade Wines.
It comes 16 months since the fund manager paid wine making veterans Rolf Binder and Christa Deans a speculated $15m for half a dozen more SA grape farms also leased to Accolade.
PWAT1 was seeded two years ago with the 425 hectare Pinegetta carrot and potato farm, in Deniliquin – also purchased via a sale and leaseback, with Japan-based Kagome.
Again in 2020, it paid the Lamattina family $42m for a Boneo, Victoria, celery farm.
That agreement, representing a 7.4 per cent yield, was a sale and leaseback too.
PWAT1 owns the goFARM Asset Management business, as well, which includes a stake in the Vitalharvest Freehold Trust, that holds seven properties.
Another of Centuria’s farm focused funds – Primewest Agricultural Trust No 2 – recently paid Harvard University $53.9m for the Moora almond orchard, in the New South Wales Riverina town of Hillston.
Late last year, it seeded a third trust targeting this product – the Centuria Agriculture Fund – with a $177m Warragul property offloaded by Roc Partners.
Portfolio hits $115m
The latest PWAT1 assets cover 113.74ha across eight holdings; all up c75ha is planted:
Also included in the deal is 223 megalitres of water assets across nine entitlements, each which support crop production of the vineyards, a Centuria statement said.
The lease is triple net, for an initial 10 years (story continues below).
“This was a rare opportunity to secure a viticultural portfolio across five well regarded South Australian wine regions, famed for producing internationally renowned wine varieties,” Centuria head of Agriculture, Andrew Tout, said.
“Each estate is meticulously managed, with all vines hand-pruned, an element that facilitates in the production of ultra-premium wines such as St Hallett Blackwell Shiraz and the Petaluma Hanlin Hill Riesling, which recently received a James Halliday wine rating of 98/100,” he added.
PWAT1 now holds 11 assets worth a total of $115.2m.
Capital to reinvest: Accolade
Accolade’s brands include Echo Falls, Grant Burge, Hardy’s, House of Arms and St Hallett.
“The sale and leaseback…for these well cultivated vineyards provides Accolade Wines with capital to reinvest in our premium wine production,” the wine maker’s general manager, Strategy and Transformation, Matthew Adams, said.
“Importantly, it also locks in grape supply for flagship brands in our premium range, ensuring we can continue making the great wines that our customers love,” he added.
“Accolade Wines has a proud heritage that has grown from humble beginnings in South Australia to a global market with our labels found on dinner tables and restaurants around the world,” according to the executive.
“Primewest understands the intricacies of the agricultural property market, and it’s a pleasure to be working with them again”.
Centuria’s takeover of Primewest was approved by unitholders last July.
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