Core Property reviews the Primewest Agricultural Trust No.1

Core Property has reviewed the Primewest Agricultural Trust No.1, the latest investment offering from Primewest. 

The Trust is an open ended unlisted property fund that invests in agricultural properties. The agriculture sector which is well positioned to benefit from worldwide population growth, relatively affordable land values and increasing demand for Australian food products.

The Trust is offering 31.5M of new units to investors at $1.00 per unit, to fund the acquisition of its second property, the "Lamattina" farm on the Mornington Peninsula in Victoria (Click here to view the property).The 385 hectare property is being acquired on a sale and leaseback from A&G Lamattina, an established vegetable grower since 1955, with a new 10 year lease.

Following the acquisition, the Manager is targeting distributions of 7.5% in FY21.

Core Property has rated the Fund as RECOMMENDED, however notes that macroeconomic uncertainty as a result of COVID-19 may pose a risk to future valuations and capital returns.