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.

Together, the foundation 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 12 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

Organisation Rating / Recommendation
Zenith Investment Partners Approved