June 28, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Having successfully completed its sixth acquisition, Warakirri announced that its Warakirri Diversified Agriculture Fund has surpassed a value of AUD100 million (US$66.14 million). 

Adding to its portfolio that contains existing high quality berry, citrus, soft leaf vegetable, vineyard, and agri-infrastructure assets, the fund has made its first foray into the nut segment with the acquisition of one of the country’s most water efficient, large-scale almond orchards through an off-market deal for AUD30 million (US$19.84 million).

Founded in Melbourne in 1993, Warakirri is a multi-boutique asset management firm that has been a leader in agricultural investment and management for more than 25 years. Over that time, the team has developed an in-depth understanding of the critical principles contributing to the success of such investment. Today, Warakirri’s REIT strategies, the Warakirri Diversified Agriculture Fund and Warakirri Farmland Fund, offer investors exposure to the low-volatility agricultural asset class, offering a broad range of high-quality property assets being run by best-in-class tenant partners.

Located in the Sunraysia region on the Murray River near Mildura in northwest Victoria, this asset brings to Warakirri more than 350 planted hectares (865 acres) that will be managed by the fund’s tenant partner, Bright Light Agribusiness Group, one of the fastest growing privately owned almond growers in Australia. 

The growth of the almond industry in Australia can be attributed to a range of factors including favorable climatic conditions, increasing global demand, government support, technological advancements, and greater focus on environmental sustainability. With its continued success, the Australian almond industry is poised to play a vital role in the country’s agricultural landscape and international trade.

The country’s almond industry saw production soar from 7,000 tons in 2002/2003 to 142,805 tons in the 2022/2023 season, and over the past decade achieved 118 percent growth in exports, with volumes climbing from 52,795 tons in 2013 to 115,049 tons in 2022.

And as demand grows, a new project to be managed in partnership by Hort Innovation and the Almond Board of Australia has been funded with AUD7 million (US$4.62 million) in support of fueling even greater export growth. 

“We’re delighted to add another first-class horticulture asset and a further high-quality tenant partner to the Fund,” said Steve Jarrot, portfolio manager for the fund. “The Bright Light group own and operate almond orchards across the Sunraysia region and have recently completed development of a new, state-of-the-art processing facility, to become only the fourth integrated grower, processor and marketer of almonds in Australia.”

Jarrot continued, “As well as another strong new tenant partner, the asset adds new exposure to one of the Fund’s key target sectors, and valuable geographic diversification to the portfolio. We look forward to working with the Bright Light team on this stand-out property.”

This acquisition follows little more than a year after the fund made its fifth acquisition – the Chromy Estate Vineyard and Winery in the Tamar Valley, Tasmania’s oldest wine growing area known for its premium cool-climate wines.

“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 Jarrot last year. 

“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.”

With the goal of identifying assets with strong fundamental potential for long-term returns, Jarrot also noted in 2022 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 in chief 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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