Warakirri adds kiwifruit orchards to farmland fund

Warakirri Asset Management has added a 200-hectare aggregation of three orchards, mainly kiwifruit, with some nashi and corella pears as well as jujubes, to its farmland fund.

The manager paid $33 million for the orchards in the Goulburn Valley region of Victoria, calling the purchase a well-scaled addition that diversifies the farmland fund's portfolio and lifts its return profile.

The orchards will be leased to Seeka Limited, Warakirri's new tenant partner.

The New Zealand listed company, which has been active in Australia since 2015, is the region's largest integrated kiwifruit producer, accounting for around 70% of local output.

The purchase brings the $130 million farmland fund, which is targeting a scale of $500 million, to five assets. The fund launched in April 2021 and secured two foundation assets in the stone-fruit sector a year later, before acquiring two vineyards in December 2022.

Warakirri Farmland Fund portfolio manager Steve Jarrott noted that the Goulburn Valley acquisition added a "prime horticultural asset" in one of Australia's most productive agricultural areas to the fund.

Seeka chief executive Michael Franks, meanwhile, said the company's partnership with Warakirri opens several opportunities for future sustainable development in the region.

"Warakirri are a progressive and complementary partner..." Franks said.

Warakirri applies an investment philosophy that views the sustainable and responsible stewardship of agricultural assets as fundamental to maximising value and generating competitive returns.

The farmland fund, it said, will take a balanced consideration to environmental, social, governance, and financial outcomes as part of portfolio construction.

It will specifically exclude assets involving the farming of tobacco, hemp, cannabis, palm oil, planned or historic deforestation, and short-hold farmland strategies.

The fund's indicative portfolio spans a max of sectors, with up to 50% allocated to fruit, including summer fruits, tropical fruits, citrus, pears, olives, apples, avocados, and berries.

It may also allocate up to 50% for nuts such as almonds, macadamias, walnuts, and pistachios.

Further allocations include up to 35% to both wine and table grape vineyards, up to 30% to row crops, and up to 20% to water entitlements.