Key Takeaways
- Centuria Capital Group has expanded its agriculture real estate platform to $820 million following the acquisition of a 43-hectare hydroponic glasshouse in Two Wells, South Australia.
- The $168 million off-market deal was secured through the Centuria Agriculture Fund (CAF) and increases the platform’s protected cropping footprint to over 160 hectares.
- The facility, operated by Perfection Fresh, is Australia’s largest hydroponic glasshouse and supplies major supermarkets, airlines, and food service providers.
- The asset is backed by a 17.4-year triple net lease, reducing operating overheads for CAF.
- CAF’s portfolio now totals $629 million across six assets, with 100% occupancy and a 16.2-year WALE.
Centuria Capital Group Acquires Major Protected Cropping Asset
Centuria Capital Group (ASX: CNI) has expanded its agriculture real estate platform to $820 million with the acquisition of a 43-hectare glasshouse facility in Two Wells, South Australia. Operated by Perfection Fresh, the asset is the largest hydroponic glasshouse in Australia and represents a significant milestone for Centuria’s expanding agricultural portfolio.
The $168 million off-market transaction was completed by the open-ended Centuria Agriculture Fund (CAF) and secured from Fresh Country Farms of Australia. With this acquisition, Centuria’s glasshouse holdings grow by 25%, comprising more than 150 hectares of glasshouse assets and over 160 hectares of protected cropping nationwide.
Leadership Highlights Strategic Growth in Agriculture Real Estate
Jason Huljich, Joint CEO of Centuria, said the acquisition aligns with the company’s long-term strategy. “We have grown Centuria’s Agriculture AUM and capabilities as part of a deliberate strategy to seed alternative real estate asset classes that appeal to our investors, are well supported by attractive themes, and provide a long runway for further growth.”
Huljich added that Centuria is building a leadership position in domestic institutional agriculture real estate with an emphasis on sustainable, high-yield infrastructure.
“This strong track record is credited to partnering with experienced, well established operators.”
Perfection Fresh to Continue Operating the Facility
Located on Germantown Road in Two Wells, the site produces snacking tomatoes, baby cucumbers (“Qukes”), and other vegetable varieties. Perfection Fresh, one of Australia’s largest privately owned fresh produce businesses, operates the facility and maintains long-term supply contracts with major supermarket chains, airlines, and food service companies.
Andrew Essey, Chief Investment Officer at Centuria, welcomed the operator to the portfolio.
“It’s a pleasure to welcome Perfection Fresh to the Centuria fold… We are immensely proud to secure the Two Wells glasshouse facility – a trophy asset being the largest in Australia and the largest in the Southern Hemisphere.”
Essey noted that Centuria will continue seeking high-quality agricultural property investments supported by strong market fundamentals.
Long-Term Lease and Infrastructure Support Attractive Returns
The acquisition is backed by a 17.4-year triple net lease, meaning Perfection Fresh is responsible for all maintenance, repairs, and property-related costs. This significantly reduces overheads for CAF and enhances cash flow certainty.
The 166-hectare site includes:
- Five glasshouses
- Five storage dams and an evaporation dam
- A packing shed, fertigation and boiler rooms
- Office and staff facilities
- Extensive irrigation infrastructure
- Onsite electrical generation supporting year-round production
Andrew Tout, Centuria’s Head of Agriculture, stated that the acquisition broadens tenant diversity and geographic coverage across Australia’s premier glasshouse regions.
Centuria Agriculture Fund Portfolio Reaches Six Fully Occupied Assets
Following settlement, the Centuria Agriculture Fund portfolio grows to $629 million across six assets, providing:
- 100% occupancy
- A 16.2-year weighted average lease expiry (WALE)
