Warakirri swoops on Riverina orchard in eight-figure deal

A Melbourne-based agricultural investor and asset manager has swooped on a premier citrus orchard located in the heart of the NSW Riverina.

A Melbourne-based agricultural investor and asset manager has swooped on a premier citrus orchard located in the heart of the NSW Riverina, marking its first investment north of the Murray River.

Warakirri Asset Management has acquired Budwood Citrus, a modern 160ha planting. It is the newest asset for the Warakirri Diversified Agriculture Fund, taking the value of the portfolio beyond $150m.

Acquired for $15m via an off-market transaction, Warakirri said the orchard featured a range of citrus varieties, first-class infrastructure and high security water entitlements.

“We’re delighted to add another prime horticulture asset in a great region and a sector we believe to be one of the most attractive in the high-value space,” Warakirri Diversified Agriculture Fund portfolio manager Steve Jarrott said.

Budwood Citrus has been bought by Warakirri Asset Management’s Diversified Agriculture Fund in a $15m, off-market deal.

“The Riverina is one of the most productive and agriculturally diverse regions in Australia, and the citrus orchards of the Leeton and Griffith area are renowned for both high-quality fruit and productivity.

“This new asset increases the fund’s citrus exposure to around 13 per cent of the DAF portfolio, while significantly enhancing geographic spread and diversifying climate, water and counterparty exposures.”

The deal will also bring an eighth and new tenant partner to the fund, Eureka Farms Australia, a subsidiary of long-time citrus industry farm manager Southern Cross Farms.

Eureka Farms Australia will be supported by fruit packer and marketer Mildura Fruit Company, operating the aggregation under a long-term agreement with ongoing citrus supply into Mildura Fruit Company’s nearby Pacific Fresh facility in Leeton.

Launched in 2020, the Warakirri Diversified Agriculture Fund portfolio comprises 34 per cent exposure to viticultural assets plus berries, almonds, soft-leaf vegetables and agri-infrastructure.

In June 2023 the value of the fund exceeded $115m following a $32m off-market acquisition of an almond orchard near Mildura.

The 350ha almond orchard, Mondall, was the fund’s sixth asset and was leased to Bright Light Agribusiness group with a 10-year initial term.