The Carpenters Project is a 300-hectare avocado development located in Pemberton, Western Australia, 3.5 hours south of Perth.
Through a special purpose vehicle (SPV), the property is under a 30-year lease with a further 10 year plus 10 year option to build, own and operate a 300-hectare avocado orchard, which when developed will be one of the largest single avocado projects in Australia.
With approximately 2,500 hectares of current avocado production in Western Australia, this single development has the potential to represent about 10 per cent of WA’s planted hectares.
Renowned around Australia for its cool climate, mineral rich soils and access to high-quality water, Pemberton produces premium avocados. Due to this unique climate, the Pemberton region can achieve high average annual yields of between 20 tonnes and 30 tonnes per hectare. Based on data provided by Alterra's execution partner French's Group, avocado prices were A$5.44 –A$9.38 per kilogram for the September 2019 to January 2020 harvest period.
Australia currently only exports about 3 per cent of its total avocado production, with significant potential to grow exports into the future, particularly from this unique production area of Pemberton. Given the property’s location, climate and access to high-quality water, Alterra’s Pemberton project is well positioned to push Western Australia into the international spotlight.
The property has existing water licensing, and approval has been granted for the construction of a 3.0 gigalitre dam onsite.
The land and water resources for the initial development of the Carpenters Project have been leased by the SPV from Red Moon Property Holdings Pty Ltd (Red Moon), an entity related to the Casotti Group, WA’s largest privately-owned fruit grower, packer and wholesaler.
Alterra will oversee the day-to-day management of the operation for a per-hectare management fee in addition to a yearly crop performance fee, and an investment performance fee.
Having executed the lease agreement, the SPV will now progress with finalising a bankable feasibility study and raise development capital. While Alterra has not provided a parent company guarantee for the SPV's obligations under the lease, Alterra is committing an initial $350,000 to the SPV for working capital purposes including; first two years lease payments and ongoing feasibility costs.
Express interest in the project .