Proterra banks $360m from SA, Vic farms

Real Estate Source | December 12, 2021

Proterra banks $360m from SA, Vic farms

by Marc Pallisco
The assets are around Donald, Lake Bolac, Stawell and north of Penola.
Proterra Investment Partners has banked over $360 million selling 49 farms to 23 local buyers.
The price for the Corinella portfolio comes in slightly over guide ($350m) – at more than $16,000 per hectare.
The majority of the assets are Victorian grain farms in Western Victoria and the Wimmera, offered as three aggregations:
Greens Creek or Stawell – containing five farms across 6778ha;
Western District or Lake Bolac, with five properties covering 6347ha, and
Wimmera or Donald (four assets on a total of 6959ha).
In South Australia, the Glenroy Plains aggregation spreads 2212ha between Naracoorte and Penola.
With 5778 megalitres of groundwater entitlements, this component also includes a 49ha wine grape vineyard
About 20,383ha, or 91 per cent of the portfolio’s area, is arable.
The California based vendor was represented by LAWD’s Danny Thomas and Elizabeth Doyle, who said 63 offers were received following the close of an expressions of interest campaign two months ago.
Corinella portfolio took four years to create
The Corinella portfolio took four years to create.
Proterra managing director Becs Wilson said the decision to split it up was driven by “unprecedented demand” from the local community driving the strongest possible outcome for its investors (story continues below).
The result, she added, would deliver a projected gross return at final close in Australian dollars on the investment exceeding 20 per cent and a projected net return over 15pc on a US dollar basis.
“Despite the additional work created by splitting up the portfolio, it is wonderful to see these assets return to local farmers who in some cases have been waiting years to expand their holdings,” according to the executive.
“It also demonstrates the value that corporates bring to the agriculture space in aggregating, developing and operating large scale farming enterprises but also being flexible enough to determine the best exit strategy to meet the market and an absolute focus on maximising value for investors”.
Proterra established its local portfolio in 2009, while it was part of Black River Asset Management, a wholly owned subsidiary of Cargill, which is still an investment partner.
It was spun out as a standalone investment advisor and private equity fund manager five years ago – about which time it made its first purchase for the Corinella portfolio.
In 2019, the group sold Canada’s PSP Investments a 70pc stake in another entity, BFB, which controlled 44,000ha in New South Wales.
Proterra has branches in London, Minneapolis, Sao Paulo, Shanghai and Singapore.
Its local office is in Sydney.
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