November 6, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Warakirri Asset Management is on fire this week. Not only has the investment manager launched its new Sustainability Broadacre Cropping Strategy, it also announced that its Diversified Agriculture Fund has made two new acquisitions, bringing total acquisition to eight and its assets to more than A$140 million (US$90.82 million). 

Warakirri’s REIT strategies, the Warakirri Diversified Agriculture Fund launched in 2020, and Warakirri Farmland Fund launched in 2021, offer exposure to the low-volatility agricultural asset class with 200,000 hectares of farmland under management across nearly 70 properties, and more than A$250 million (US$162.18 million) in funding raised from Australian and foreign wholesale investors including one of Europe’s leading pension funds. 

Marking the fund’s seventh and eighth acquisitions, this deal was for two established vineyards in Western Australia – the Amadeus Vineyard and Smithbrook Estate – under a sale and leaseback structure for a total consideration of A$22 million (US$14.27 million). Assuming the 15-year lease is another high-quality tenant partner, Margaret River Wine Production Pty Ltd – part of the Fogarty Wine Group, explained Warakirri. 

“Through this investment we’re adding another two great premium wine assets and a fantastic new Tenant Partner for the Fund,” said Steve Jarrott, portfolio manager, Warakirri Diversified Agriculture Fund.

“Fogarty Wine Group is not only one of Australia’s most awarded wine producers, but a best-in-class, market leading operator producing a strong range of ultra-premium wines across a number of great brands and regions.” 

Both holdings are located in the enviable and productive Margaret River and Pemberton regions respectively, and are able to claim reliable climatic conditions and water resources, producing premium grapes for a number of the Fogarty Wine Group Brands. 

“We are pleased to be partnering with  Warakirri on two of our vineyard assets,” commented Peter Fogarty, executive chairman, Fogarty Wine Group. “With significant expansion of our owned vineyards in Tasmania, we saw the opportunity to balance our owned versus leased vineyard portfolio and Warakirri presented as the best partner for these vineyard assets.”

“The reallocation of capital allows Fogarty Wine Group to plant additional vines on our vineyards owned in Margaret River and Tasmania as well as support funding for the ongoing growth of our ultra-premium wine brands.” 

With more than two decades of experience in identifying, developing, and operating agricultural assets, the Warakirri team has developed an in-depth understanding of the critical principles contributing to the success of such investments, becoming one of Australia’s largest and most diverse agricultural investment managers.

This depth of knowledge was evident in September of this year, when following an independent audit covering more than 160,000 hectares (395,365 acres) of properties operated by the investment manager under its various strategies, including the Warakirri Diversified Agriculture Fund, Warakirri Farmland Fund,  and Warakirri Cropping, the firm secured certification by the Leading Harvest Farmland Management Standard. 

Leading Harvest, an industry leader in agriculture sustainability, was launched on Earth Day in April 2020 presenting the first universal, outcomes-based sustainability standard focused on the continuous improvement of agriculture. And since that time, it has been a game-changer. 

The standard identifies sustainable practices based on 13 objectives, 33 performance measures, and 73 indicators. The platform addresses economic, environmental, social, and governance issues, and includes measures to efficiently use water, agricultural chemicals, and energy to grow crops for agricultural products while minimizing waste, conserving soils and water, and enhancing biodiversity. It also takes into consideration the wellbeing of the lessees of farmland, employees, contact management company employees, contract farm laborers, and local communities. 

“Warakirri’s proud history and long-term experience in agriculture has taught us that agricultural  investments committed to environmental sustainability, positive social impact, and responsible  management produce higher and more sustainable long-term returns,” said Jim McKay, managing director, Warakirri in September.

“Over more than 25 years, our investors’ expectations on sustainability have evolved and they are increasingly seeking sustainable investment strategies from asset managers such as ourselves.”

~ 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.

*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.