The Primewest Agricultural Trust No. 1 has secured several new assets across Victoria and South Australia.
They include Rolf Binder Winery & Vineyards in South Australia’s Barossa Valley, and two premium horticultural assets in Victoria, underpinned by leases to groups including Accolade Wines and Montague.
The three new properties have a combined purchase price of circa $40 million and will see the Trust expand its total assets to $86 million.
Established in 2020 the trust paid $4.8 million for “Pinegatta”, a 425 hectare property near Deniliquin in the NSW southern riverina region. The property is leased to blue chip tenant Kagome – Australia’s largest fruit and vegetable processor with a market capitalisation in excess of $2 billion.
Its second, $42 million purchase was “Lamattina” on Victoria’s Mornington Peninsula – a 385 hectare property, which is one of the largest land holdings and most significant “high value food” producers on the Peninsula.
Primewest director David Schwartz said the most recent acquisitions would see the agricultural trust expand its footprint into a third state and increase its exposure to the wine and fruit orchard sectors.
He said Rolf Binder Winery and Vineyards had five extensive vineyards including a significant crush facility, cellar door and restaurant, while the Victorian assets had table grapes, citrus, stone fruit and pear orchards.
“These new investments will provide the trust with increased diversification both in terms of geography, crop type and tenant covenant and assist in building the trust to a sufficient scale,” Mr Schwartz said.
“One key aim of the trust was to focus on above average value sectors such as agricultural infrastructure and water, fruit, nuts and vineyards and these assets very much meet that objective.
“All the properties have a strong supply of water and where applicable water leases are available.”
Mr Schwartz said Primewest had taken a counter-cyclical approach to investing in the agricultural sector, building a suite of quality agricultural investments leased to strong tenant covenants.
He said the trust’s blended lease expiry profile was currently in excess of nine years, providing a cash distribution of 7.25% p.a. (paid monthly) and a forecast total return (Equity IRR) of 10%.
*Fully Subscribed – Primewest Agricultural Trust No. 2 launching soon