Centuria Capital Group has acquired Sundrop Farms in South Australia from Morrison & Co for A$70m (€45m).
Sundrop Farms, a sustainable horticulture operator, has an annual output of around 17,000 tonnes of truss and baby plum tomatoes from four glasshouses, each covering five hectares.
It uses innovative technologies that integrate solar power, fresh-water production, electricity generation and hydroponics to reduce water and fossil-fuel use.
The agriculture asset was held in the Morrison & Co Growth Infrastructure Fund (MGIF) after it was acquired from KKR in 2019.
Andrew Tout, Centuria’s head of agriculture, said: “This high-quality glasshouse facility was constructed in 2016, incorporating modern renewable energy, heating and irrigation sources which create highly-sustainable, premium fresh produce.
“These are strong fundamentals that underpin a well-performing agriculture real estate investment.”
David McKinnon, investment director at Morrison & Co, said: “We acquired the business in 2019, recognising its potential to deliver a step-change in the way food is produced.”
McKinnon said the business had matured and was now profitable. He added that it was recognised as a leader in sustainable food production.