May 2, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Warakirri Asset Management (Warakirri), a multi-boutique management firm that is one of the largest ag investment managers and operators in Australia, announced that its Warakirri Diversified Agriculture Fund has made its fifth investment – the acquisition of the Chromy Estate Vineyard and Winery in the Tamar Valley, Tasmania’s oldest wine growing area known for its premium cool-climate wines.

Much like its diversified agricultural fund, which began fundraising at the start of 2019, Warakirri also plans for its institutional farmland fund, which is targeting A$500M (US$386.6 million), to acquire, develop, and own a diversified portfolio of investment grade agricultural assets that will be leased to high-quality agricultural businesses as tenant partners. 

Targeted assets will include horticulture (nuts and fruits), viticulture (wine and table grapes), water entitlements, and select row crop farmland assets. Both funds will employ Warakirri’s Sustainable Best Practices framework toward reducing energy use and carbon emissions, and improving water efficiency and biodiversity through the management and operation of these assets.

Created specifically for domestic and offshore institutional investors, the Warakirri Farmland Fund has already secured significant cornerstone funding from one of the largest pension funds in Europe, which McKay noted to IPE Actual Belongings was drawn to the fund due to Australia’s scale and growing productivity aligned with increased capital flows into the country’s ag sector, and the country’s proximity and potential for exporting to Asia.  And with a strong pipeline of investment opportunities in the wings, it remains open to new investors. In fact, the fund recently closed two investments in the two premier stone fruit growing regions of Australia: Goulburn Valley and Cobram, which will result in the fund becoming one of the largest owners of modern, high-density stone fruit orchards in the country

As of now, the Warakirri Diversified Agriculture Fund has deployed more than $80 million. All told, the fund’s portfolio of investments features high-quality berry, citrus, soft leaf vegetable, and ag infrastructure assets with five best-in-class tenant partners across five Australian states. 

This acquisition of Chromy Estate is structured as a three-way deal originated by Warakirri under which the state-of-the-art winery, a 61-hectare vineyard, restaurant, and cellar door assets will be acquired by Warakirri and transitioned into a long-term lease agreement with Endeavour Group, Australia’s leading retail drinks and hospitality business, who has acquired the associated Josef Chromy Wines business and brands for inclusion in their Paragon Wine Estates fine wine portfolio.

“We’re delighted to bring the Chromy Estate asset into  the Warakirri stable and excited by the opportunity to partner with such a high caliber industry leader as Endeavour Group,” said Steve Jarrot, portfolio manager, Warakirri Diversified Agriculture Fund. “Under the new ownership structure, we expect to see further growth and development  of both the assets and the wine business, in what will be an exciting period for the brand and the property.”

Josef Chromy OAM (Medal of the Order of Australia) has been a key facet to the development of the Tasmanian wine industry for the past three decades. He has owned and developed some of the leading wineries in the region, including Rochecombe (now  Bay of Fires), Jansz, Heemskerk and Tamar Ridge. In 2004, he founded Josef Chromy Wines, which has grown to become one of the leading sparkling houses in the state and an award-winning producer of premium Pinot Noir and Chardonnay.

“Josef Chromy is an icon of  the industry and the assets embody the quality and class of Tasmanian fine wine,” commented Adrian Goonan, head of cropping and diversified agriculture, Warakirri. “It’s a privilege to be  entrusted as a long-term steward of the property, and to play a role in continuing the Josef Chromy legacy.”

With the goal of identifying assets with strong fundamental potential for long-term returns, Jarrot noted that Warakirri has identified Australia’s wine sector as one with positive potential, adding that the fund is not stopping at Chromy Estates.

“Warakirri has a really positive long-term view on Australia’s wine sector,” said Jarrot. “Under new and existing tenant  partnerships, we’re considering a range of opportunities to expand and diversify our sector exposure with  further high quality investments across a number of wine regions.”

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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