Southern Queensland Avocado Sale & Leaseback Opportunity

Strong corporate and institutional investor interest is anticipated in the upcoming sale and leaseback of ‘Cherry Creek Estate Orchards’, a major avocado aggregation in Queensland’s South Burnett region.

CBRE’s John Harrison and Edward O’Dwyer have been appointed to steer the campaign on behalf of Organic Brothers Farms Pty Ltd.

The circa 673.59ha aggregation predominantly comprises a large-scale mature and juvenile avocado orchard, with additional plantable areas earmarked for expansion in the short to medium term.  It is expected to attract offers in excess of $40 million.

The aggregation is contained within 10 Certificates of Title and will be offered with an initial 10-year lease, with two 10-year options.

It contains approximately 246 hectares of mature (4+ year) avocado plantings and circa 20 hectares of juvenile (<4 year) avocado plantings with farm production forecast to increase to 2,390,000kg by 2028. 

The aggregation also comprises approximately 13 hectares of macadamia plantings, two hectares dedicated to protected ginger production and 94 hectares suitable for further plantings, with the remaining land currently utilised for cattle grazing. 

Mr Harrison, CBRE’s Pacific Head of Agribusiness, noted that the Cherry Creek Estate Orchards presented a sale and leaseback opportunity of a scale and diversity rarely available on the open market, with the avocado plantings offering a mixed age profile with significant development and expansion upside.

“This sale & leaseback offering presents a unique and advantageous opportunity for investors. The asset offers a stable income stream, diversification, environmental benefits, and access to a healthy commodity. As the demand for avocados and avocado oil continues to rise, the long-term growth potential for Cherry Creek Estate Orchard is promising,” Mr Harrison said.

Cherry Creek Estate Orchards was founded by two brothers and a group of friends who served together in the Australian Defence Force stationed in Iraq, East Timor and Afghanistan.  More recently, the group has developed Australia’s only commercial avocado oil processing plant, becoming a major Australian avocado oil processor.

“For those seeking to combine an agricultural real estate investment, with a long-term strategic partner dedicated to health and sustainability, Cherry Creek Estate Orchard should be strongly considered,” Mr Harrison said.