Investment fund takes glass half-full optimism to another vegetable factory

The Centuria Agricultural Fund is now landlord of four high-profile farms in NSW, Victoria and now two in South Australia.

In just two years it has become a major player in the year-round supply of vegetables to Australia's supermarkets.

Its latest $21.5 million buy is the extensive greenhouse and glasshouses on the Adelaide Plains at Riverlea Park, about 38km north of the Adelaide.

The asset includes 12ha of protected cropping on a 59ha property.

The purchase also includes planning approval for an extra 4ha glasshouse development.

The facilities can produce about 1488 tonnes of tomatoes, 136 tonnes of cucumbers, 517 tonnes of eggplants and 43 tonnes of capsicums per annum.

The Sydney-based investment fund typically buys the greenhouse developments and then allows the existing managers to continue the operations.

Centuria's latest buy also includes large packing sheds with onsite energy, fertigation and reverse osmosis infrastructure as well as a large dam and 205 megalitres of bore water licences.

P'Petual Holdings continues to operate the asset.

Centuria Agricultural Fund's portfolio now has four glass and green house assets worth $351 million.

"Centuria is excited about this recent acquisition, which provides an exceptional opportunity for P'Petual to scale-up and implement operational efficiencies," Centuria head of agriculture Andrew Tout said.

Centuria says its agricultural fund launched at the start of last year has proven popular with both retail and private bank investment clients.

P'Petual's high-tech glasshouse venture has received various government support since it was established in 1998.

It has become a major year-round vegetable supplier to Australian supermarkets and other food retailers.

P'Petual went on the sales market last year through Colliers looking for a partner to invest around $30 million to grow its plans.

Colliers' director of agribusiness transactions, Jesse Manuel, said the P'Petual business had expanded from its original double-skinned plastic greenhouses at its Buckland Park site.

"With the new production area coming online, our client has positioned itself as a significant player in the tomato, mini-cucumber and eggplant categories, as well as pre-pack lines under its well-established Ausfresh brand," Mr Manuel said.

When the business was offered for sale, co-owner and operator Henry Liu said he was excited for the future of the business.

"We have a good product line, a large and diverse customer base and plenty of land for expansion, so not only are we offering a turn-key business as a going concern, but one with a production area that can be nearly doubled in size fairly quickly should one desire," Mr Liu said.

Centuria last year bought the Costa Group's 20ha tomato glasshouse development in Guyra, between Armidale and Glen Innes.

Centuria famously paid $70 million for the much lauded eco-friendly hydroponic tomato venture near Port Augusta late in 2022.

It bought Sundrop Farms' 20 hectare glasshouse farm on a 20-year sale and leaseback deal.

And in June 2022, Centuria kickstarted its ambitious entry into horticulture by securing a $177 million glasshouse estate in Warragul, Victoria on a lease-back deal to Flavorite - reputedly the largest glasshouse producer of fresh fruits and vegetables in Australia.

The fund is believes to have paid about $80 million for the Guyra operation in NSW.

The existing tenant, Tomato Exchange, has entered an extended lease with the investment fund.

Tomato Exchange produces 12,800 tonnes of tomatoes each year and is claimed to be the biggest of its type in the southern hemisphere.

It was a wholly owned subsidiary of ASX-listed Costa Group.

The Sydney-based Centuria Capital Group is an ASX-listed specialist investment manager with more than $21 billion of assets under management.

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