Key Takeaways:
- Strategic Expansion: Centuria Capital Group has acquired a 21-hectare glasshouse, which significantly expands its agricultural assets.
- Increase in AUM: This acquisition raises Centuria’s total agricultural Assets Under Management (AUM) to approximately $0.65 billion.
- Focus on Technology and Sustainability: The facility employs advanced technology to enable year-round production and is exploring further renewable energy solutions.
- Long-term Investment: The property is secured under a 20-year triple-net lease, indicating a long-term investment strategy.
- Commitment to Sustainable Practices: Katunga Fresh continues to innovate in sustainable agriculture, focusing on energy efficiency and environmental impact.
Acquisition Overview
Centuria Capital Group (ASX: CNI), an Australasian real estate fund manager, has expanded its agricultural holdings by purchasing a 21-hectare glasshouse from Katunga Fresh in Katunga, Victoria. The facility is now part of the unlisted, open-ended Centuria Agriculture Fund (CAF), bringing its total AUM to approximately $450 million across its portfolio.
Strategic Investment
Jason Huljich, Centuria Joint CEO, remarked on the acquisition’s strategic fit within the company’s investment framework: “The acquisition of the Katunga facility aligns with our strategic goals to invest in high-quality assets that are fundamental to Australia’s agricultural infrastructure. This facility meets our stringent investment criteria and brings a robust tenant covenant, ensuring stable, long-term yields.”
Technological and Operational Enhancements
The Katunga facility incorporates advanced lighting technology that enhances growing conditions, enabling year-round tomato production. This technology significantly contributes to overcoming the challenges associated with seasonal production cycles, stabilizing supply to major Australian supermarkets.
Andrew Tout, Centuria’s Head of Agriculture, highlighted the operational efficiencies: “Partnering with Katunga Fresh, known for their focus on high-efficiency production systems, positions us advantageously in the market. Their ongoing innovations in precision farming and commitment to sustainability through renewable energy investigations are key to our joint success.”
Environmental Initiatives and Future Prospects
Katunga Fresh has pioneered glasshouse production technologies since 2004 and continues to lead in precision agriculture. The company actively pursues newer, cost-effective renewable energy technologies to lower energy costs and improve sustainability outcomes. These initiatives are expected to enhance the production facilities’ long-term viability and environmental footprint.
Geographic and Economic Impact
Located in the Goulburn Valley, an important agricultural region, the facility benefits from its proximity to significant transportation routes and markets. This strategic location supports Centuria’s vision of creating a strong, sustainable agricultural fund that contributes positively to the local economy and food security.
Image provided by Centuria Group
