Sentinel Property Group, which specializes in industrial and tourism assets, and has a portfolio of $1 billion worth of office buildings and shopping centers under management, has expanded into agriculture with its first farm purchase. Through its newly launched, open-ended Sentinel Income Trust, the Brisbane-based group, which was established by real estate investor Warren Eber, has acquired Purga Breeding Farms, a major chicken farm located in southern Queensland for $22.8 million according to Stock and Land. The deal includes three farms totaling 63 hectares and 17 poultry breeding facilities with a production capacity of 200,000 birds.

“Sentinel is committed to always staying ahead of the pack and our ability to identify new emerging investments, before they have been recognised [sic] by others has been strongly supported by our investors,” said Ebert reports Queensland Country Life. “Similar to our expansion into tourism markets, we see a lot of positive upside in exposure to Australia’s agribusiness sector and we are actively looking at further opportunities to grow our presence in this sector.”

The Australian Financial Review reports that Purga Breeder Farms will be acquired at a loan-to-value ratio of 50%, according to a Sentinel Income Trust information memorandum, and will be leased to poultry producer, Steggles, a subsidiary of major poultry producer, Baiada, until 2026.

Mr Ebert told Queensland Country Life (QLC) that poultry was a leading segment within Australia’s agriculture industry noting a 75% increase in production within the past decade.

“Only 2pc of the world’s chicken meat is currently produced in Australia and we are the only continent that has not had bird flu, so there is enormous future international growth potential for this industry,” Ebert told QCL. “Purga Breeders Farms is a major facility operated by the largest poultry producing company in the country and is an ideal first asset for Sentinel’s entry into the agribusiness sector.”