Primewest pays Lamattina family $42m for Boneo farm

Pinegetta farm in Deniliquin cost Primewest Agricultural Trust No 1 $4.8 million in April.

The four month old Primewest Agricultural Trust No 1 is paying the Lamattina family $42 million for a Boneo celery farm – part of which has development potential.

The 385 hectare property, one of the biggest food producers on the Mornington Peninsula, was offered with a 10-year triple net leaseback.

Based on the starting net annual rent A&G Lamattina & Sons will pay – $3.1m – the deal for 125 Browns Road is struck on a c7.4 per cent yield.

Boneo deal follows Pinegetta, goFARM AM, Vitalharvest

Primewest Agricultural Trust No 1 was seeded with a 425ha carrot and potato farm, Pinegetta, in New South Wales’ Deniliquin, which cost $4.8m.

That holding was also acquired with a leaseback – to Japan’s Kagome, Australia’s largest fruit and vegetable processor.

The fund also spent $10m in April for goFARM Asset Management and as a result, a stake in real estate investment trust Vitalharvest Freehold Trust which contains 259ha within four berry properties (in Corindi and Tumbarumba, New South Wales, and Dunorlan and Nine Mile, in Tasmania), and three South Australian citrus farms (Kangara, Solara and Yandilla).

It is expected to double in size, with a portfolio worth about $100m.

ASX listed Primewest, which turns 25 this year, has $4.5 billion-plus of assets under management – including in every mainland Australian state (story continues below).

As well as farms, its real estate portfolio includes industrial, office and retail, including bulky goods.

Boneo operation controls half of Australia’s celery market

Russell and Tina Lamattina run the vegetable growing business established by the former’s parents, Angelo and Giuseppina, on two acres, in 1955.

The Boneo operation controls more than half of the country’s celery market.

“Lamattina is a rare, investment grade, agricultural asset secured on a long term, triple-net leaseback to one of Australia’s largest…producers with ongoing supply agreements to major supermarkets including Coles ad Woolworths,” Primewest director David Schwartz said of the holding.

“It has water licenses covering 1,494 megalitres including bore, surface and Class A recycled water, with a year-round state-of-the-art irrigation system.

“The property also features 120ha of land with greenfield development potential”.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco