Investment objective
The Fund aims to generate a total portfolio level internal rate of return (IRR) after fees, expenses and Fund level tax, of 7% to 11% per annum via a stable income stream from leasing out assets to high quality agricultural businesses and long-term capital growth of the portfolio assets.
Investment strategy
The investment portfolio will be developed over time within the strategic portfolio asset allocation, with individual investments and portfolio weighting subject to opportunities and value. The Fund will focus on higher value sectors with attractive lease terms and quality tenants. Examples of likely assets in higher value sectors are nuts, fruit, vineyards, intensive livestock, agriculture infrastructure and water.
Portfolio holdings
An indicative long-term portfolio asset allocation is provided below:
| 0-40% |
Fruit (Citrus, pears, olives, apples, avocados, mangoes & berries) |
|
| 0-40% |
Nuts (Almonds, macadamia, walnuts & pistachios) |
|
| 0-30% |
Vineyards (Wine & table grapes) |
|
| 0-30% |
Intensive Livestock (Poultry meat) |
|
| 0-20% |
Agricultural Infrastructure (Processing, greenhouses & storage) |
|
| 0-30% | Water Entitlements | |
Foundation Assets
Warakirri has secured deals on three foundation assets for the Fund and long-term Tenant Partnerships with three fresh produce sector leaders – Costa Group, Moora Citrus and Dicky Bill Australia – across three separate acquisitions as part of a well progressed pipeline of transactions.
The three initial Tenant Partners will lease and operate the selection of high-quality investment grade assets across states of Victoria, Queensland and Western Australia. The properties will provide investors with direct exposure to farmland, infrastructure and water entitlements, producing high quality Berry, Citrus and Soft Leaf Vegetable products for domestic and international markets.
A fourth asset, a modern livestock feed mill situated in the Western Districts of Victoria, was secured for the Fund in February 2021. The facility produces a diverse range of nutritionally designed, tailor-mix feed rations for livestock producers. The vendor, stockfeed market leader Reid Stockfeeds, will lease back and continue to operate the asset as the Fund’s fourth long-term Tenant Partner.
Together, these investments provide a secure long-term income return of 8-9%^ per annum to the Fund, quarterly income cash distributions and strong long-term capital growth potential, with an average tenant weighted average lease expiry (WALE) of close to 15 years.
The Fund is available to wholesale investors only. Please contact us on 1300 927 254 or contact@warakirri.com.au for a copy of the Information Memorandum and an Application Form.
^ Property returns quoted to the Fund after leverage, before fees and tax.
A Growing Asset Class
The global thematic of rising populations, increasing wealth and changing population demographics is not new. An increasing global demand for food, particularly in Asia, provides an opportunity for Australian agriculture to capitalise on its competitive advantages and future growth prospects to deliver strong investment returns.
An investment in agriculture can offer:
- Competitive risk adjusted returns over the long term;
- A low level of volatility relative to other asset classes; and
- Returns uncorrelated to other traditional asset classes
Fund Documents
FUND RATINGS & PLATFORM AVAILABILITY
| Platform | |
|---|---|
| HUB24 | Perpetual |
| Macquarie Wrap | Powerwrap |
| Mason Stevens | Praemium |
| Morgan Stanley | Netwealth |
The Zenith Investment Partners (ABN 27 103132 672, AFS License 226872) (“Zenith”) rating (assigned 30 November 2021) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines