By Gerelyn Terzo, Global AgInvesting Media
Australian ag-land manager Warakirri Asset Management has announced its latest investment amid a partnership with its new tenant partner Seeka. The Warakirri Farmland Fund has scooped up a large-scale kiwi fruit aggregation in one of Australia’s prime horticultural zones. Warakirri considers its investment of slightly more than A$33 million (US$21.2 million) a well-scaled addition to the farmland fund, one that brings diversification to the portfolio and that’s accretive to the fund’s current return profile.
Launched in 2021, the Warakirri Farmland Fund is open-ended in nature, targeting opportunities created by rising global demand for food and Australia’s critical role in the global food supply chain. This investment coincides with the firm’s recently launched dairy strategy for which the firm is targeting a reported A$500 million (US$321.3 million) in capital from investors. Warakirri asset Management oversees approximately A$3 billion (US$1.9 billion) in assets under management.
Spanning 200 hectares (494.2 acres) in the Goulburn Valley region of Victoria, the Warakirri Farmland Fund’s newest aggregation comprises a trio of orchards that primarily produce kiwifruit alongside small volumes of nashi pears, corella pears and jujubes. Victoria is a leading production area for kiwifruit, representing approximately 66 percent of Australia’s output. Kiwifruits thrive in climates with a combination of warm summer temperatures and cool winters.
The deal is the first of its kind between Warakirri and the esteemed kiwifruit producer and supplier Seeka Limited. As a listed New Zealand entity, Seeka is the leading kiwifruit grower in Australia and New Zealand, where it also boasts one of the biggest integrated horticultural businesses in the region. Seeka is a familiar brand in Australia, where it has been operating for the past decade, producing up to 70 percent of the country’s kiwifruit and serving as its largest grower, packer and marketer of Nashi pears.
Warakirri Farmland Fund Portfolio Manager Steve Jarrott said: “We’re really pleased to add another prime horticultural asset to the Warakirri Farmland Fund, but equally excited to start a new relationship with Seeka. The Goulburn Valley is one of the most productive agricultural areas in Australia and Seeka are not only a horticultural leader in this region, but a best-in-class operator in NZ and major global player in the kiwifruit category. We’re very much looking forward to working with Seeka on these industry leading assets.”
Seeka Chief Executive Michael Franks said, “The company is delighted to have Warakirri Asset Management as a partner in Australia. It opens up a number of opportunities for future sustainable development in the region. Warakirri are a progressive and complementary partner and we are very pleased to be alongside them.”
Warakirri’s Farmland Fund offers domestic and international institutional investors access to investment grade agricultural property with what it describes as an “attractive and stable income profile.” The fund features investments in high quality stone fruit, wine grapes and fruit assets across three states.
The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.