Warakirri Farmland Fund completes new acquisition – diversifies sector exposure with new tenant partner

Steve Jarrott

Warakirri Asset Management has announced a new investment for the Warakirri Farmland Fund (Fund), a large-scale kiwi fruit aggregation in one of Australia’s prime horticultural zones.  Totaling 200 hectares in the Goulburn Valley region of Victoria, the aggregation of three orchards, primarily produces kiwifruit, together with small volumes of nashi pears, corella pears and jujubes. 

The deal is a first with new Tenant Partner and renowned kiwifruit producer and supplier, Seeka Limited. A New Zealand (NZ) publicly listed company, Seeka is the largest kiwifruit grower in Australia and New Zealand, and one of the largest integrated horticultural businesses across the two countries. With significant production, packing, and marketing operations based out of Te Puke in the Bay of Plenty region, the business has been operating in Australia since 2015 and accounts for as much as 70% of Australia’s kiwifruit production.  Seeka is also Australia’s largest grower, packer and marketer of Nashi pears.

Steve Jarrott, Portfolio Manager for the Fund, said: “We’re really pleased to add another prime horticultural asset to the Warakirri Farmland Fund, but equally excited to start a new relationship with Seeka.  The Goulburn Valley is one of the most productive agricultural areas in Australia and Seeka are not only a horticultural leader in this region, but a best-in-class operator in NZ and major global player in the kiwifruit category.”

“We’re very much looking forward to working with Seeka on these industry leading assets,” he added. 

Michael Franks, Seeka Chief Executive, advised: “The company is delighted to have Warakirri Asset Management as a partner in Australia. It opens up a number of opportunities for future sustainable development in the region. Warakirri are a progressive and complementary partner and we are very pleased to be alongside them.”

The investment of just over $33m is a well scaled addition for the Fund, building on and diversifying the current portfolio with a deal that is accretive to the Fund’s current return profile.

The Warakirri Farmland Fund provides domestic and international institutional investors unique access to investment grade agricultural property with an attractive and stable income profile. The Fund’s portfolio of investments currently feature high quality stone fruit, wine grapes and fruit assets, with best in class Tenant Partners across three states.