Much lauded farm eco champion powerhouse changes hands again

Centuria Agricultural Fund has bought Sundrop Farms' 20 hectare glasshouse farm on a 20-year sale and leaseback deal.

Sundrop Farms opened with great fanfare in 2016 at a cost of between $150m-$200m with SA government support of about $6m.

World-leading technology is used to grow 15,000 tonnes of pesticide-free, carbon neutral tomatoes a year.

The farm uses a 115 metre-high solar tower to produce energy to power the plant growing systems and to heat and cool the greenhouses as required.

It has 23,000 mirrors (2m x 1m) pointed at it.

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Water comes from the Spencer Gulf, and is desalinated using a cutting-edge thermal desalination plant.

The ASX-listed Centuria Capital Group's Centuria Agriculture Fund bought the facility from from the Morrison & Co. Growth Infrastructure Fund.

In June, Centuria secured a $177 million glasshouse estate in Warragul, Victoria.

It sold with a 20-year lease back to Roc Partners' Flavorite, which produces hydroponically grown tomatoes and other vegetables to the big supermarkets.

The Port Augusta site includes four five-hectare glasshouses, a 1.4-megalitre reverse osmosis plant, a one megalitre desalination plant that processes up to 600ML of seawater annually, a 25ML storage dam, a packaging warehouse and a 12.5-hectare Concentrated Solar Energy System, which creates sustainable onsite renewable energy.

The energy system generates 30,000 megawatts of heating, 45,700 kwh of electricity and facilitates seawater desalination.

Centuria joint chief executive Jason Huljich said: "We are pleased to partner with Sundrop who has developed world-first, integrated sustainable farming technology, resulting in more predictable volumes of produce arising from the protected nature of its farming activities.

"Centuria will continue to partner with experienced operators with a strong track record in agricultural innovation and this is one of a series of agricultural acquisitions we intend to deliver throughout FY23 and beyond, with the aim of growing CAF into one of Australia's largest unlisted, sector-specific agriculture funds," he said.

"Agricultural real estate throughout Australia continues to experience strong tailwinds resulting from increasing global demand for Australian agricultural products and technological innovations."