03 May 2022
Warakirri has announced settlement of “Chromy Estate”, the home of Josef Chromy Wines in Tasmania, as the fifth investment of the Warakirri Diversified Agriculture Fund (Fund).
The Fund, which has now deployed in excess of $80 million with capital commitments from wholesale investors across family offices, charities, advisory groups and superannuation funds, provides investors access to a diversified portfolio of high quality agricultural assets under a real estate investment trust structure.
In a three-way deal originated by Warakirri, the state-of-the-art “Chromy Estate” winery, 61-hectare vineyard, restaurant, and cellar door assets will be acquired by Warakirri and transitioned into a long term lease arrangement with Australia’s leading retail drinks and hospitality business, Endeavour Group, who have acquired the related Josef Chromy Wines business and brands for their Paragon Wine Estates fine wine portfolio.
Steve Jarrott, Portfolio Manager for the Fund, said: “We’re delighted to bring the Chromy Estate asset into the Warakirri stable and excited by the opportunity to partner with such a high caliber industry leader as Endeavour Group. Under the new ownership structure we expect to see further growth and development of both the assets and the wine business, in what will be an exciting period for the brand and the property.”
Josef Chromy OAM has been instrumental in the development of the Tasmanian wine industry for the past 30 years, having owned and developed some of the region’s leading wineries, including Rochecombe (now Bay of Fires), Jansz, Heemskerk and Tamar Ridge. He founded Josef Chromy Wines in 2004 and today the winery is one of the leading sparkling houses in Tasmania, as well as an award-winning producer of premium Pinot Noir and Chardonnay.
Warakirri Head of Cropping and Diversified Agriculture, Adrian Goonan added: “Josef Chromy is an icon of the industry and the assets embody the quality and class of Tasmanian fine wine. It’s a privilege to be entrusted as a long-term steward of the property, and to play a role in continuing the Josef Chromy legacy”.
Situated just south of Launceston, the property is located in the Tamar Valley region, which is Tasmania’s oldest wine growing area, known for its premium cool-climate wines. The estate vineyard is one of the largest and most well-regarded sites in the Tasmanian wine industry.
“Josef Chromy Wines has wonderful potential for growth and I am certain that the expertise and financial strength of the new owners combined with our excellent staff will see unprecedented expansion over coming years. I wish Endeavour Group and Warakirri every success for the future at Josef Chromy Wines,” Josef Chromy OAM said.
The Warakirri Diversified Agriculture Fund’s strategy is to own a diversified portfolio of investment grade Australian agricultural assets for the primary purpose of leasing to high quality agricultural businesses (Tenant Partners) who are experts in their field.
“Warakirri has a really positive long-term view on Australia’s wine sector. Under new and existing tenant partnerships, we’re considering a range of opportunities to expand and diversify our sector exposure with further high quality investments across a number of wine regions,” said Mr. Jarrott.
The Warakirri Diversified Agriculture Fund’s portfolio of investments also features high quality Berry, Citrus, Soft Leaf Vegetable and ag-infrastructure assets, with five best in class Tenant Partners across five states. The Fund remains open to new investors and has a strong pipeline of investment opportunities.