Australian listed property fund manager Primewest has recently completed a sale and leaseback deal for Piscioneri Farms – a citrus and table grape operation in Sunraysia, Victoria, confirms Smith Agri International, which managed the transaction.
Consisting of approximately 93 total acres, of which 84 are planted, the sale of Piscioneri Farms, which brings with it “extensive water rights and modern infrastructure,” was conducted on an “off market” basis.
The terms of the deal result in ongoing management services for Piscioneri, and a long-term lease arranged with Montague Bros., which will serve to create a dedicated supply of citrus and table grapes to Montague’s new $66 million Narre Warren processing facility.
Off Market Deals
It was just in April of this year that Centuria Capital entered into a bid implementation deed (BID) with Primewest for an off-market takeover offer for Primewest for A$600 million (US$462.5 million).
If all conditions are met, once the transaction is complete the merger of the two complementary investment platforms will result in a single entity with AUM exceeding A$15 billion (about US$11.7 billion), and will position the new merged group for index inclusion on the S&P/ASX200 with a market cap of A$2.2 billion (US$1.7 billion).
It has also been recently reported that as the two parties move closer to completion of the merger deal, Centuria Capital is gathering 12,000 investors for the business.
“In the past if you look at either Primewest or Augusta or Centuria, if we bought a $100 million or a $120 million property that has pretty well tapped out most unlisted retail players,” John McBain, co-CEO, Centuria Capital told AFR. “Well, we’ve doubled that [scale of acquisition] just as an opening salvo. We’ll be doing much more of that.”
Only months earlier, in February of this year, Primewest more than tripled its funding target for its newly launched Primewest Agricultural Trust No 1 to A$350 million (US$268 million), and stated it may list the fund, but did not specify a timeframe for such action.
The move followed the launch of an A$55 million (US$41.75 million) equity raising, which was also surpassed, earning A$60 million (US$45.5 million) to be used by Primewest to fund key investments made by its unlisted agricultural trust, which was to possibly act as the starting point for Primewest’s proposed REIT, and another of its property income funds.
Primewest entered the Australian agricultural space in April of last year with the launch of its inaugural ag investment fund with an initial funding target of A$100 million (US$76 million) and its first ag acquisition.
For more information: globalaginvesting.com