03 November 2023
Warakirri is pleased to announce the addition of two new investments for the Warakirri Diversified Agriculture Fund (Fund), taking Fund assets to over $140 million.
A $22m initial investment made under a sale and leaseback structure, the deal involves two established vineyards in Western Australia on a 15-year lease with another high-quality Tenant Partner, Margaret River Wine Production Pty Ltd which forms part of the Fogarty Wine Group (Fogarty Wine Group).
Both vineyard investments build on the Fund’s diversification by geography, climate, water source and counterparty, while adding further scale and complementing the Fund’s existing premium wine sector exposure.
The subject assets, known as ‘Amadeus Vineyard’ and ‘Smithbrook Estate’, are located in the highly sought- after and productive regions of Margaret River and Pemberton respectively. Supported by reliable climate and water, these vineyards produce premium grapes for a number of the Fogarty Wine Group brands.
Steve Jarrott, Portfolio Manager for the Fund, said: “Through this investment we’re adding another two great premium wine assets and a fantastic new Tenant Partner for the Fund. Fogarty Wine Group is not only one of Australia’s most awarded wine producers, but a best in class, market leading operator producing a strong range of ultra-premium wines across a number of great brands and regions.”
Peter Fogarty, Executive Chairman of Fogarty Wine Group, added: “We are pleased to be partnering with Warakirri on two of our vineyard assets. With significant expansion of our owned vineyards in Tasmania, we saw the opportunity to balance our owned versus leased vineyard portfolio and Warakirri presented as the best partner for these vineyard assets. The reallocation of capital allows Fogarty Wine Group to plant additional vines on our vineyards owned in Margaret River and Tasmania as well as support funding for the ongoing growth of our ultra-premium wine brands.”
The addition of what are the Fund’s seventh and eighth assets, builds on the portfolio’s existing investments that include high quality Wine, Almond, Berry, Citrus, Soft Leaf Vegetable and Agri- infrastructure assets, with seven best in class Tenant Partners across five states.