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AppHarvest Completes USD 127M Sale-Leaseback With Mastronardi

AppHarvest Richmond Kentucky Farm Tony Martin

AppHarvest has completed the sale-leaseback of its indoor leafy greens farm in Berea, Kentucky, for a little over $127 million. In Richmond, Kentucky, the business also just constructed a 60-acre high-tech indoor farm. A portion of the money raised will go toward paying down the previously mentioned $30 million bridge loan. AppHarvest anticipates receiving commercial shipments for the first time from each of the four farms in its network. In 2022, the number of farms using AppHarvest’s network has tripled. 

With Mastronardi Berea LLC, a partnership between Mastronardi Produce and COFRA Holding, the Appalachia company has agreed a sale-leaseback of its high-tech indoor leafy greens farm in Berea for around $127 million. The first lease term is for 10 years, with four renewal terms of five years each. Mastronardi Produce is AppHarvest’s exclusive marketing and distribution partner, and it has supplied some of the biggest national grocery store chains, eateries, and foodservice establishments with produce from AppHarvest, including tomatoes, leafy greens, and strawberries. The first two years of prepaid rent at the Berea plant as well as the previously disclosed $30 million bridging loan from Mastronardi Produce to AppHarvest would also be returned in part with the premium of the sale-leaseback.

“The AppHarvest team has worked relentlessly this year to get the four-farm network operational, and those efforts have paid off with the quadrupling of farms in our network and diversifying our crop set,” said AppHarvest Founder & CEO Jonathan Webb in the company’s press release. “The team is now focused on operations to ramp up production and revenue from the four high-tech farms.”

Additionally, AppHarvest said that its Richmond, Kentucky, farm is now operational and has started producing Campari brand tomatoes. Early January is when the first harvest at Richmond is projected to occur, which means that AppHarvest will likely get commercial shipments for the first time from each of its four farms. The Richmond farm is now planted in half, with planting on the remaining portion scheduled for 2023.

Image provided by AppHarvest


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