Fund has a hearty appetite for nation's biggest tomato 'factories'

The Centuria Agricultural Fund's appetite for our biggest glasshouse farms shows no signs of slowing after another big Victorian buy, this time the Van den Goor family's 21 hectare Katunga Fresh glasshouse in northern Victoria.

Centuria has already snapped up big glasshouse food factories in NSW and South Australia.

In June 2022, Centuria announced its arrival with the $177 million buy of the massive glasshouse estate in Warragul, Victoria on a lease-back deal to Flavorite - reputedly the largest glasshouse producer of fresh fruits and vegetables in Australia.

That's was the fund's first big buy.

A Sydney-based investment fund has bought another big vegetable grower on a lease-back deal, it's fifth big glasshouse buy.

In two years of making big deals, Centuria now dominates year-round vegetable sales to the supermarkets as landlord of high-profile farms in NSW, two in South Australia and now two in Victoria..

This year it paid $21.5 million for the extensive greenhouse and glasshouses on the Adelaide Plains at Riverlea Park, about 38km north of Adelaide.

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

Flavorite's development at Warragul was the Centuria's fund's first big glasshouse buy.

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

P'Petual Holdings continues to operate the latest SA buy.

Centuria says its agricultural fund has proven popular with both retail and private bank investment clients.

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.

Centuria's fund has announced the successful purchase of its "fifth high quality asset" with the Katunga Fresh glasshouse located in Katunga, between Cobram and Nurmurkah.

The off-market sale-and-leaseback transaction was secured on a 20-year triple-net lease.

Operator, Katunga Fresh, is one of Australia's largest suppliers of tomatoes and it has operated from this site for 20 years, supplying Australia's major supermarkets with year-round produce.

Katunga's lighting technology increases growing hours, produce yield and aids in offsetting the seasonality of production.

Centuria head of agriculture Andrew Tout said: "We are pleased to partner with Katunga Fresh whose focus on high-efficiency production systems provide it with a genuine point of difference in the marketplace and enables the operator to generate a consistently profitable supply of fresh tomatoes and capsicums all-year-round.

"Katunga Fresh has been operating since 2004 and was one of the nation's first adopters of glasshouse production. It continues to be an innovator within the precision farming market."

Katunga Fresh has focused on creating a low-cost, clean energy operation utilising the latest quad gen technology and is investigating additional renewable energy technologies which target lower energy costs as well as providing an improved sustainability outcome.

The sale-and-leaseback deal from the Van den Goor family is said to be worth about $100 million.

The acquisition features a 20-year triple-net lease, the investment company said.

The transaction increases Centuria's agricultural portfolio to $450 million with a total glasshouse inventory of more than 100 hectares.

The asset has production capacity for approximately 16,000 tonnes of truss tomatoes per annum.

In addition to glasshouse facilities, the acquisition includes large packing sheds, energy infrastructure and substantial onsite water storage capacity.