Crops

The Warakirri Diversified Agriculture Fund now has exposure to nuts, viticulture, soft-leaf vegetables, agricultural infrastructure and citrus fruit across Australia.

The acquisition is the first step in the buildout of The Flavour Farm, a European indoor ag play that will incorporate renewable energy assets as a core growth strategy.

Paine Schwartz Partners, which previously invested in Costa from 2011-15 before listing it, has bid to acquire it again in a deal worth A$1.6bn.

‘There isn’t resistance out of principle’ from Australian superfunds to investing in agriculture, but barriers remain, says CEFC’s Heechung Sung.

Proterra’s Fund V has already acquired two farms in the US and will primarily target assets in the Midwest, Pacific Northwest and southern states.

CDPQ's Nicolas Leyssieux and CEFC's Heechung Sung set out how the unusual deal to establish a farmland investment platform while taking an equity stake in Gunn Agri Partners came about.

The close represents the first stage of a planned initial fundraise of A$65m, which will be used to acquire a mixed farming aggregation and water entitlements in NSW’s Southern Riverina.

CEFC and CDPQ will establish Wilga Farming, an open-end platform with A$200m of capital to be managed by Gunn Agri Partners, as well as taking a stake in the asset manager itself.

The firm has acquired a 70ha property in the country and has made an offer on another 220ha asset as it builds out the new operation.

PGIM’s Shehriyar Antia says investors and policymakers see the food system as ‘where the ESG puck is going’ and will draw on recent experience in energy in developing their approach.