Victorian orchards snapped up in $33m deal

A Melbourne-based agricultural investor and asset manager has swooped on three orchards across 200ha in Victoria’s Goulburn Valley.

A portfolio of three Bunbartha orchards have changed hands in a $33m sale.

A Hong Kong-based conglomerate, founded by one of the nation’s richest men, has sold a 200ha portfolio of fruit orchards in Victoria’s Goulburn Valley.

The Cayman Islands-registered CK Asset Holding Limited, part of the Li family’s CK Group, has sold its Goulburn Valley Kiwifruit Orchards, located 15km north of Shepparton, to Australian agricultural asset manager Warakirri Asset Management.

In a deal worth slightly more than $33m, Warakirri Asset Management has acquired the three-orchard portfolio as part of their Warakirri Farmland Fund.

The fund includes stonefruit properties in Victoria’s Goulburn Valley, plus two large scale vineyards in South Australia and NSW, and a tenant partnership with a leading global wine company.

Listed for sale in August last year following four years of ownership, the CK Group acquired the 200ha portfolio, paying $26.5m in a sale and leaseback arrangement with the New Zealand Exchange-listed Seeka in December 2020.

Located at Bunbartha and Mundoona, the portfolio’s landholdings consist of three established orchards, known as Hayward Orchard (70ha), Austral Orchard (89ha) and Lakes Orchard (40ha), all located within a 4km radius.

Hayward Orchard, Austral Orchard and Lakes Orchard have been purchased by Warakirri Asset Management.

The deal is Warakirri’s first with new tenant partner and renowned kiwifruit producer and supplier, Seeka Limited, which has a long-term tenancy arrangement in place until June 2031 to produce Hayward kiwifruit and nashi pears with significant interests in European pears, apricots, plums and cherries.

“We’re really pleased to add another prime horticultural asset to the Warakirri Farmland Fund, but equally excited to start a new relationship with Seeka,” Warakirri Farmland Fund portfolio manager Steve Jarrott said.

“The Goulburn Valley is one of the most productive agricultural areas in Australia and Seeka are not only a horticultural leader in this region, but a best-in-class operator in NZ and major global player in the kiwifruit category.”

The Goulburn Valley Kiwifruit Orchards are underpinned by a secure water supply with its frontage to GMW supply channels – including No. 12 Main Channel, which abuts the northern boundary of the Hayward orchard.

There is also direct access to GMW supply points, allowing for water to be delivered directly to the orchards and applied via an automated sprinkler irrigation system using MAIT system controllers.

The CK Group have sold their 200ha Bunbartha orchards portfolio to Warakirri’s Farmland Fund for slighly more than $33m.

The property is further benefitted by 1000ML of Goulburn-Murray Zone 1A water entitlements as well as clear access to temporary water markets.

CK Life Sciences owns about $1.8bn worth of Australian agricultural assets, backed by the family of Hong Kong’s richest man, Li Ka-Shing.

Their Australian holdings include 88,000ha of cropping farms in WA and the Belvino Investments portfolio of 11 vineyard properties across Victoria, South Australia, NSW.

Established in 1993, Warakirri Asset Management has a cropping vehicle that operates across 11 aggregations in NSW, Queensland, Victoria and Western Australia totalling about 155,000ha.

It also operates the Warakirri Diversified Agriculture Fund, which recently exceeded $150m in value following the purchase of a 160ha orchard in the NSW Riverina for $15m.

Originally published as Victorian orchards snapped up in $33m deal