Funds controlled by Centuria Capital used to acquire South Australian glasshouse operation
Asset manager Morrison & Co has agreed to sell both the property assets and the operating company of Sundrop Farms.
Located in Port Augusta, South Australia, Sundrop Farms is a large glasshouse operation that produces around 17,000 tonnes of truss and baby plum tomatoes each year.
The business has been acquired by funds controlled by Centuria Capital. The property assets have been acquired for A$70m and the operating companies have been acquired for an undisclosed amount.
Morrison & Co acquired Sundrop Farms in 2019, recognising its potential to deliver “a step-change in the way food is produced”, according to Morrison & Co’s investment director David McKinnon.
“We’re proud to have worked with management over the years to turn the business into a mature and profitable one, being a key regional employer, and leader in sustainable food production,” McKinnon said.
Sundrop Farms has adopted innovative technologies that integrate solar power, fresh water production, electricity generation and hydroponics, which deliver a reduction in water and fossil fuel use.
“This high-quality glasshouse facility was constructed in 2016, incorporating modern renewable energy, heating and irrigation sources, which creates highly sustainable, premium fresh produce,” said Andrew Tout, Centuria’s head of agriculture. “These are strong fundamentals that underpin a well performing agriculture real estate investment.”