In a pair of back-to-back deals, Australia’s Centuria Capital Group, a real estate funds manager, has bolstered its agricultural investment portfolio. Among the transactions, Centuria Capital acquired the management rights to the Arrow Primary Infrastructure Fund (APIF) from Arrow Funds Management, bringing A$444 million in assets under Centuria’s umbrella and pushing its agriculture vertical holdings to A$1.3 billion, per the announcement. This deal came on the heels of Centuria’s acquisition of a massive glasshouse located in South Australia from Fresh Country Farms, highlighting the firm’s momentum in premium agricultural real estate.
The APIF deal, which was off-market in nature, is expected to buoy Centuria’s earnings outlook ahead through an accretive structure, clocking in at a 5.5 times EBIT multiple after synergies are realized. APIF features a collection of nearly two-dozen properties, with an average lease expiration of nearly 13 years attached. Lessees include major industry players such as Baiada Poultry Group, Select Harvests, Nutrano Group, Pace Farms and SunPork Group.
The fund’s diverse assets are representative of Australian agri-business, featuring everything from bustling poultry farms and a specialized pork fattening operation to lush almond and macadamia orchards, tropical mango groves, dried fruit vineyards and a cutting-edge organic glasshouse. This mix aligns with Centuria’s broad-reaching agriculture arm, which already covers an impressive spread of commodities and regions, creating opportunities for accelerating APIF’s growth through the firm’s investor connections.
Of the APIF deal, Centuria Joint CEO John McBain stated, “This acquisition adds further scale and operational expertise to Centuria’s agriculture division. Centuria’s growth in agricultural real estate has been part of a deliberate strategy to diversify into high conviction alternative real estate sectors, which we commenced in the post-COVID period and have subsequently scaled beyond A$1 billion of AUM.
Centuria Joint CEO Jason Huljich commented, “We look forward to meeting the Arrow investors in person and gaining a better insight into their investment goals. We also anticipate being able to offer carefully selected agricultural investment opportunities to enhance the Arrow portfolio by applying the proven disciplined methodology that has guided Arrow’s achievements over the years.
APIF’s assets stretch across several key Australian regions, including New South Wales, Victoria, South Australia and the Northern Territory. The majority of these holdings come with leases that include annual rental increases linked directly to the Consumer Price Index (CPI), paving the way for likely steady income growth.
Andrew Tout, Centuria Head of Agriculture, pointed out that the deal enhances the firm’s “geographic and commodity diversity, focused on efficient protein production by Australia’s leading farmers.”
Centuria has also bulked up its exposure to protected cropping, last month acquiring what it describes as the largest hydroponic glasshouse in the Southern Hemisphere, a 43-hectare facility in Two Wells, South Australia operated by Perfection Fresh. The off-market asset, purchased for A$168 million by the Centuria Agriculture Fund (CAF) from Fresh Country Farms of Australia, is secured on an attractive 17-year triple net lease.
Nestled near the city of Adelaide, Australia, Perfection Fresh’s Two Wells complex stands out as one of the most environmentally advanced glasshouse facility of its type. Spanning 43 hectares, it harnesses hydroponic methods to grow a variety of premium snacking tomatoes and Qukes baby cucumbers year-round. The operation boasts branded specialties like Kumato, Mix-A-Mato and other unique tomato varieties, all grown in a controlled environment that minimizes waste and maximizes sustainability. Centuria now controls more than 150 hectares of glasshouse assets and over 160 hectares of protected cropping operations.
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