Australian grower seeks investment partner for $ 30 million deal

P’Petual Holdings is a South Australian vegetable growing company. The company is looking for an investment partner that can bring in thirty million dollars. The owners of the business have appointed Colliers to find an investment partner. Founded in the late 1990s, P’Petual Holdings has grown into a major vegetable supplier to supermarkets and greengrocers throughout Australia and abroad.

Jesse Manuel, Director of Agribusiness Transactions at Colliers, says P’Petual’s activities have grown significantly in recent years with the addition of a 6-hectare greenhouse complex, office building and packing station on the original 6-hectare site with double-walled plastic greenhouses in Buckland Park.

“With the new cultivation facility, our customer has become a major player in the tomato, mini cucumber and eggplant sector, as well as having its own line of packaged products under the established Ausfresh brand,” says Jesse.

“The owners are open to innovation, and we believe that the expertise and relationships they have built with the industry over the past two decades will complement a new capital injection that seeks to leverage the current demand for P’s products. “Petual. An equity partnership to accelerate the development and growth of the existing business or the sale and leaseback of the real estate assets to free up expansion capital may be attractive to passive investors. “

Henry Liu, co-owner and CEO of P’Petual Holdings, says he is very excited about the company’s future. “We have a good product line, a large and diverse customer base and a lot of ground for expansion. So we provide not only a turnkey business to build on, but also a business with a growing area that can almost grow in size quite quickly. ” doubled if you wanted to. “

Tim Altschwager, National Director of Agribusiness Transactions, says P’Petual has a strong focus on sustainability. “P’Petual takes many initiatives to ensure that the company minimizes its impact on the environment, including good water management with recycled rainwater, recycling of CO2 emissions and integrated pest management with the introduction of beneficial insects in the greenhouses. Such activities include higher returns. , lower costs and a smaller CO2 footprint, “said Altschwager.

The P’Petual property covers nearly 60 acres of land, with two plots in Buckland Park, and falls within a large urban growth corridor where Walker Corporation establishes housing development projects.

Altschwager says the outlook for P’Petual’s appreciation of the site looks very positive.

“A large part of the property is marked as an urban edge, intended for the development of low- and medium-density residential areas and activity centers. The land that is currently being developed is marked as an industrial zone, intended for business, industry and industry. Quantities are attracting a lot of interest from supermarkets and other customers in Australia, including wholesalers and retailers. “

According to Colliers, the Australian agricultural sector remains attractive as an alternative investment vehicle for institutional investors seeking long-term returns and portfolio diversification.

“As an asset class, Australian food, agriculture and horticulture are highly sought after by international companies and investors,” said Jesse Manuel. “The growing world population, the affordable nature of Australian soil compared to other countries and the growing global demand for Australian food have supported the agricultural and horticultural land market.”

“In recent years, Colliers has witnessed the emergence of global, advanced players in the Australian agricultural investment market. These players have access to capital to finance asset acquisition and productivity gains through new technology or process integration, ultimately to maximize their returns. “

Jesse Manuel says that greenhouses allow growers to exercise much more control over environmental conditions and produce year-round. This way you can take advantage of higher prices out of season.

“Since crops are protected from the weather, it is unlikely that even extreme weather will have an impact. The need to use environmentally harmful chemicals such as pesticides, fungicides and herbicides is greatly reduced. Much of the water used to spray the crops can be recycled. and recycled, minimizing waste and excess water costs. Alternative fuels such as solar or gas can be used for heating and other cultivation tasks, reducing energy requirements and the CO2 footprint. “

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