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.

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Steve Jarrott

Warakirri Asset Management has announced the addition of its newest asset for the Warakirri Diversified Agriculture Fund (Fund), taking the strategy beyond a A$150m portfolio value milestone.

Adding to the Fund’s existing exposure to the citrus sector, the acquisition brings together two nearby holdings in the Riverina’s Murrumbidgee Irrigation Area.  A modern 160-hectare planting, the aggregation is a great example of a best-in-class Australian citrus orchard, and the first NSW investment for this portfolio. 

Featuring a range of quality citrus varieties, first-class infrastructure and high security water entitlements, the $15 million off-market deal also brings a new Tenant Partner to the Fund.  Eureka Farms Australia, a subsidiary of long-time citrus industry farm manager, Southern Cross Farms (“SCF”) supported by significant and highly regarded packer/marketer Mildura Fruit Company (“MFC”), will operate the aggregation under a long-term agreement that will underpin the ongoing supply of high-quality citrus into MFC’s nearby Pacific Fresh facility in Leeton.  SCF is a horticultural manager and operator with over 30 years of experience operating horticulture and viticulture assets, including citrus, almonds, avocados and winegrapes; while MFC are one of the largest packers, marketers and exporters of quality citrus in Australia.

Steve Jarrott, Portfolio Manager for the Fund, said: “We’re delighted to add another prime horticulture asset in a great region and a sector we believe to be one of the most attractive in the high value space.  The Riverina is one of the most productive and agriculturally diverse regions in Australia, and the citrus orchards of the Leeton and Griffith area are renowned for both high-quality fruit and productivity”.  

“This new asset increases the Fund’s citrus exposure to around 13% of the DAF portfolio, while significantly enhancing geographic spread and diversifying climate, water and counterparty exposures.  We’re very much looking forward to working with Eureka Farms on this industry leading orchard,” he added.

The Warakirri Diversified Agriculture Fund’s portfolio of investments feature high quality berry, citrus, almond, soft leaf vegetable, agri-infrastructure and wine sector assets, with eight best in class Tenant Partners across five states.

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Steve Jarrott

Warakirri Asset Management has announced the addition of two new investments for the Warakirri Diversified Agriculture Fund (Fund), taking Fund assets to over $140 million.

A $22m initial investment made under a sale and leaseback structure, the deal involves two established vineyards in Western Australia on a 15-year lease with another high-quality Tenant Partner, Margaret River Wine Production Pty Ltd which forms part of the Fogarty Wine Group (Fogarty Wine Group).

Both vineyard investments build on the Fund’s diversification by geography, climate, water source and counterparty, while adding further scale and complementing the Fund’s existing premium wine sector exposure.

The subject assets, known as ‘Amadeus Vineyard’ and ‘Smithbrook Estate’, are located in the highly sought-after and productive regions of Margaret River and Pemberton respectively. Supported by reliable climate and water, these vineyards produce premium grapes for a number of the Fogarty Wine Group brands.

Steve Jarrott, Portfolio Manager for the Fund, said: “Through this investment we’re adding another two great premium wine assets and a fantastic new Tenant Partner for the Fund.  Fogarty Wine Group is not only one of Australia’s most awarded wine producers, but a best in class, market leading operator producing a strong range of ultra-premium wines across a number of great brands and regions.”

Peter Fogarty, Executive Chairman of Fogarty Wine Group, added: “We are pleased to be partnering with Warakirri on two of our vineyard assets. With significant expansion of our owned vineyards in Tasmania, we saw the opportunity to balance our owned versus leased vineyard portfolio and Warakirri presented as the best partner for these vineyard assets. The reallocation of capital allows Fogarty Wine Group to plant additional vines on our vineyards owned in Margaret River and Tasmania as well as support funding for the ongoing growth of our ultra-premium wine brands.”

The addition of what are the Fund’s seventh and eighth assets, builds on the portfolio’s existing investments that include high quality Wine, Almond, Berry, Citrus, Soft Leaf Vegetable and Agri-infrastructure assets, with seven best in class Tenant Partners across five states.

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Steve Jarrott

Warakirri Asset Management has announced the addition of its newest asset for the Warakirri Diversified Agriculture Fund (Fund), taking the strategy beyond a A$100m portfolio value milestone.

Adding the Fund’s first exposure to the nut complex, the Fund’s sixth investment is located in the Sunraysia region on the Murray River near Mildura (north-west Victoria) and is one of the most land and water efficient large-scale almond orchards in the country, spanning over 350 planted hectares.

In a $30 million off-market deal, the Fund’s Tenant Partner for this asset is one of the largest and fastest growing privately owned almond growers in Australia, the Bright Light Agribusiness group.

Steve Jarrott, Portfolio Manager for the Fund, said: “We’re delighted to add another first-class horticulture asset and a further high-quality Tenant Partner to the Fund. The Bright Light group own and operate almond orchards across the Sunraysia region and have recently completed development of a new, state-of-the-art processing facility, to become only the 4th integrated grower, processor and marketer of almonds in Australia.”

“As well as another strong new Tenant Partner, the asset adds new exposure to one of the Fund’s key target sectors, and valuable geographic diversification to the portfolio. We look forward to working with the Bright Light team on this stand-out property” he added.

The Warakirri Diversified Agriculture Fund’s portfolio of investments currently features high quality Berry, Citrus, Soft Leaf Vegetable, Agri-infrastructure and vineyard assets, with six best in class Tenant Partners across five states.

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Steve Jarrott

Warakirri Asset Management has announced settlement on an additional asset for the Warakirri Diversified Agriculture Fund (Fund), which has now deployed in excess of $50 million after securing capital commitments from wholesale investors across family offices, charities, advisory groups and superannuation funds.

The Fund’s fourth asset is a strategic agriculture infrastructure investment in Victoria, consisting of a modern livestock feed mill and related commodity storage located on the edge of Cobden in the Western Districts.

The vendor in the transaction, stockfeed market leader Reid Stockfeeds (RSF), remains in occupation of the property as another best-in-class Tenant Partner of the Fund, entering a lease back agreement that will see this business continue to operate the asset for at least a further 20 years.

From five production facilities in Victoria, RSF are in the top 5 national producers of stockfeed and a key player in the Victoria, Riverina and South East South Australia markets they operate in.

Late last year, Warakirri secured deals on three foundation assets for the Fund and long-term Tenant Partnerships with fresh produce sector leaders – Costa Group, Moora Citrus and Dicky Bill Australia.

Together, these initial investments provide a weighted average rental yield of 8.2%1 per annum to the Fund and a 15-year weighted average lease expiry.

The Fund recently made its inaugural quarterly income distribution for the March 2021 quarter end, equating to an annualised yield of 7.4% per annum on called capital (net of fees and fund costs).  This first payment is in line with the Fund’s policy of distributing all surplus income and slightly above its 6%+ yield target.

Steve Jarrott, Portfolio Manager for the Fund, said: “We’re delighted to add another quality asset and Tenant Partner to the Fund. Reid Stockfeeds has a strong track record and are one of Australia’s leading providers of high quality stock feed.  They are a well-respected, growing business, servicing livestock producers in the dairy, pork, poultry, beef and lamb sectors”.

“We are committed to continuing our disciplined approach, to carefully select new assets and Tenant Partners, and ensuring this is not only a rewarding income investment, particularly in the current low interest rate environment, but a valuable, low volatility, total return exposure for our clients over the long term” added Mr. Jarrott.The Warakirri Diversified Agriculture Fund’s strategy is to own a diversified portfolio of investment grade Australian agricultural assets for the primary purpose of leasing to high quality agricultural businesses (Tenant Partners) who are experts in their field.

Warakirri has been acquiring, developing and operating Australian agricultural assets on behalf of investors for over 20 years.

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Steve Jarrott

Warakirri Asset Management has announced transactions on three foundation assets with initial Tenant Partners for the Warakirri Diversified Agriculture Fund (Fund).

The Warakirri Diversified Agriculture Fund was launched in 2019 with capital commitments from foundation wholesale investors, including family offices, charities, advisory groups and superannuation funds.

The Fund’s strategy is to own a diversified portfolio of investment grade Australian agricultural assets for the primary purpose of leasing to high quality agricultural businesses (Tenant Partners) who are experts in their field.

Warakirri has secured deals on three foundation assets for the Fund and long-term Tenant Partnerships with three fresh produce sector leaders – Costa Group, Moora Citrus and Dicky Bill Australia – across three separate acquisitions as part of a well progressed pipeline of transactions.

The three initial Tenant Partners will lease and operate the selection of high-quality investment grade assets across states of Victoria, Queensland and Western Australia. The properties will provide investors with direct exposure to farmland, infrastructure and water entitlements, producing high quality Berry, Citrus and Soft Leaf Vegetable products for domestic and international markets.

Together, the foundation investments provide a secure long-term income return of 8-9%1 per annum to the Fund, quarterly income cash distributions and strong long-term capital growth potential, with an average tenant weighted average lease expiry (WALE) of 12 years.

Steve Jarrott, Portfolio Manager for the Fund, said: “We’re delighted to commence the Fund with these high-quality foundation investments and in particular, the class and calibre of our initial Tenant Partners. From Costa Group, who are a benchmark in sustainable, commercial fresh produce farming, to WA’s premier, vertically integrated citrus business in the Moora Citrus Group, and Dicky Bill Australia, a business with an intense focus on quality, consistency and sustainability in vegetable production.”

“These are all quality businesses who reflect the attributes and values we look for in a Tenant Partner”, added Mr. Jarrott.

As a core Agriculture Property investment strategy, the Fund targets a wide range of Australian agricultural assets in different regions and sectors, including fruit, nuts, grapes, infrastructure, intensive livestock and water. Between now and calendar year end, Warakirri plans to execute and announce the acquisition and long-term lease back of the Fund’s first agribusiness supply chain infrastructure investment.

Adrian Goonan, Head of Cropping and Diversified Agriculture for Warakirri said: “This is an exciting development for the Fund as we seek to provide investors exposure to high quality agricultural investments. Agriculture is supported by a strong, long-term secular demand outlook for Australian agricultural products, and astute investors are being rewarded with top tier investment performance over the long term, with low volatility and low to zero correlation to traditional asset classes. There is a compelling case for investors to consider agricultural exposure as part of a well-diversified investment portfolio”.

Warakirri has been acquiring, developing and operating Australian agricultural assets on behalf of investors for 24 years.

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