New Offering for Avocado Orchard With 12.8% Target Annual Returns

A new farmland investment offering is going live today on AcreTrader’s investment platform with a target net annual return of 12.8%.

Latest Farm Offering: This latest offering is for Mareeba Avocado Orchard in Queensland, Australia. The orchard is an aggregation of four properties located in Paddy’s Green, a rural locality in the shire of Mareeba, totaling 415.5 gross acres.

The properties currently grow Hass avocados, Shepard avocados, mangoes, lychees and lemons, although the sponsor intends to redevelop the land to dedicate it fully to growing avocados. The redevelopment will take approximately two years, but the sponsor intends to begin distributions in year one with cash flow from the mature acreage of avocados.

The Mareeba region has an ideal climate for avocado production and meets the earliest harvest window in the country, allowing farmers to provide supply at a unique time.

The orchards come with permanent irrigation water entitlements totaling 460 megalitres and benefit from an average rainfall of 30 inches per year. The region has an established and reliable rainfed, government-managed irrigation program, and the properties benefit from reliable spring-fed dams and groundwater wells.

Investment Highlights: Australia is currently a net importer of avocados, meaning the domestic demand for this crop is strong. Australia’s legal framework also provides strong protection for asset owners, with geographic proximity to large developing economies underpinned by trade agreements.

• Minimum investment: $35,000
• Estimated net annual return: 12.8%
• Estimated average net cash yield: 10.6%
• Estimated holding period: 10 to 12 years

View more details on AcreTrader and the platform’s latest offerings.

Deal Sponsor: The Mareeba Avocado Orchard offering is sponsored by Aqua Ceres LLC. The sponsor and its affiliates have an extensive history of buying, developing and managing farmland assets and currently operate over 100,000 acres of agricultural properties in Australia, including a previous AcreTrader offering: the Burnett River Citrus Orchards in Gayndah, Queensland.

It’s also worth noting that the sponsor team has accumulated a significant amount of water entitlements as part of the Aqua Ceres Australia Water Fund.

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Photo: Courtesy of AcreTrader