Australasian real estate funds manager, Centuria Capital Group (ASX: CNI or Centuria), has expanded its agriculture real estate platform to $820 million, securing the Perfection Fresh operated 43ha glasshouse facility in Two Wells, South Australia.

The asset is Australia’s largest hydroponic glasshouse facility and increases Centuria’s agricultural portfolio by 25 per cent to more than 150ha of glasshouse assets and 160ha of protected cropping agriculture.

The off-market transaction was secured for $168 million by the open-ended unlisted Centuria Agriculture Fund (CAF) from Fresh Country Farms of Australia.

Centuria joint chief executive Jason Huljich says we have grown Centuria’s Agriculture AUM and capabilities as part of a deliberate strategy to seed alternative real estate asset classes which appeal to our investors, are well supported by attractive themes, and provide a long runway for further growth.

“Centuria is leading domestic institutional agriculture real estate investment with a bias towards sustainable farming infrastructure to deliver high produce yields to meet rising demand from Australia’s expanding population,” Jason explains.

“This strong track record is credited to partnering with experienced, well-established operators,” he says.

Located at Germantown Road in Two Wells, north of Adelaide, the asset provides snacking tomatoes, ‘Quke’ baby cucumbers and other snacking vegetable varieties each year.

It is operated by one of Australia’s largest privately owned fresh produce businesses, Perfection Fresh, which has secured long term contracts with major supermarkets, airlines and food service businesses.

“It’s a pleasure to welcome Perfection Fresh to the Centuria fold,” Centuria chief investment officer Andrew Essey says.

“It is one of the country’s leading, premium quality fresh produce suppliers, delivering exclusive fruit and vegetable brands such as broccolini, qukes and calypso mangos,” he adds.

“We are immensely proud to secure the Two Wells glasshouse facility – a trophy asset being the largest in Australia and the Southern Hemisphere.

“Centuria will continue to seek convincing investment opportunities across the agricultural property market, which harness persistent sector tailwinds.”

The acquisition is secured by a 17.4-year triple net lease, meaning all maintenance and upkeep of the property is the responsibility of the operator, providing reduced overheads for CAF.

The asset provides five glasshouses, supported by five storage dams, an evaporation dam, packing shed, fertigation and boiler room, and office and staff amenities buildings within a 166ha site.

It has extensive irrigation infrastructure, and an onsite electrical generating plant equipment supports year-round production.

Centuria head of agriculture Andrew Tout adds this acquisition delivers full diversity of Australia’s top tenant covenants and strengthens our geographic spread across the country’s premier glasshouse growing regions.