05 December 2022
Warakirri, one of Australia’s largest Agriculture investment managers and operators, has announced the acquisition of two large scale vineyard investments for the Warakirri Farmland Fund (Fund).
Under a new Partnership with leading global wine company, Australian Vintage Limited (AVG), the transaction includes over 1,300 hectares of land and a portfolio of water entitlements with a combined value of A$62.5m.
The Fund will acquire and lease back the two vineyards, “Coldridge” in South Australia and “Grande Junction” in NSW, on a long term basis. Under the terms of the agreement, the parties will work together on vineyard developments to maximise production and promote sustainability.
As one of the largest producers in Australia, ASX listed AVG is at the forefront of the Australian wine industry, crushing approximately 7% of total Australian production and crafting quality wine from some of the country’s most iconic wine regions. The two subject vineyards are operated by a high- class internal management team and currently supply around 23,000 tonnes of grapes to the AVG winery each year.
Jim McKay, Warakirri Asset Management’s Managing Director said: “We’re excited to add these two quality assets and another best-in-class Tenant Partner to the Warakirri Farmland Fund. AVG’s commitment to quality grape and wine production, innovation, social responsibility and sustainability make them a great partner for our Fund’s clients.”
“The Australian wine industry retains strong fundamentals and good future growth prospects. With our strategy and investment philosophy, patient long-term perspective, and a high-quality partner like AVG, this land and water rich vineyard investment is a great way for the Fund to gain exposure to this sector” added the Fund’s portfolio manager, Steve Jarrott.
AVL Wines’ Chief Executive Craig Garvin said: “Warakirri are known for their world class capability within the agricultural sector. They have committed to further enhance and develop the vineyards thereby improving yield output and we are really pleased to be able to work with them on this opportunity.”
The Warakirri Farmland Fund was launched in 2021 and developed specifically for domestic and international institutional investors, after securing significant seed funding from one of Europe’s leading pension funds. The Fund will buy, develop and own a diversified portfolio of investment grade agricultural property and lease the assets to high quality agricultural businesses, as Tenant Partners. Target assets include horticulture, viticulture, water entitlements and selected row crop farmland assets.