Funds will allow for the acquisition of four berry properties located in New South Wales and Tasmania and three citrus properties located in South Australia.
The initial assets have been independently valued at $238.4 million by CBRE as at 31 May 2018.
Investors exposed to agriculture backed by experience
Investors in VitalHarvest REIT will be exposed to one of Australia’s largest aggregations of citrus orchards and one of Australia’s largest aggregations of berry farms.
The agricultural asset portfolio is diversified by way of crop type, climatic region, water source and product end markets.
The citrus and berry assets will be managed by a highly experienced management team.
Targeting income and capital growth
VitalHarvest aims to invest in agricultural assets that it can lease on a medium to long-term basis targeting both income and capital growth, as well as diversification.
As and when the opportunities arise, VitalHarvest aims to participate in value-accretive capital expenditure projects.
Farming properties leased by Costa Group
The farming properties are leased to wholly-owned subsidiaries of Costa Group Ltd (ASX:CGC).
Costa Group is Australia’s leading grower, packer and marketer of premium quality fresh fruit and vegetables.
Its operations include about 3,500 planted hectares of farmland, 30 hectares of glasshouse facilities and 7 mushroom growing facilities across Australia.
Costa Group also has joint ventures covering 5 blueberry farms in Morocco and 2 berry farms in China.