- Costa Group (CGC) signs new leases for Vitalharvest Freehold Trust assets
- Vitalharvest leases three citrus farms in South Australian and four berry farms across New South Wales and Tasmania
- The new agreement reflects the current market conditions and commenced on December 1 and expires in December 2040, with a 10-year renewal option
- Due to these new leases, Costa’s 2022’s earnings will be $5 million higher, while profit after tax will be $6.4 million lower
- Costa has ended the day down 0.66 per cent and trading at $3.03 per share
Costa Group (CGC) has signed new leases for Vitalharvest Freehold Trust assets.
The company is the tenant of Macquarie Asset Management after the assets manager’s acquisition of its landlord, Vitalharvest.
Vitalharvest leases three citrus farms in South Australia and four berry farms across New South Wales and Tasmania. A fixed rent agreement applies for each of the seven farms.
The new agreement reflects the current market conditions and was official on December 1 and expires in December 2040, with a 10-year renewal option.
“The previous Vitalharvest leases if renewed would have been subject to a market rental review in 2026,” the company said.
“Relative to these previous leases the new arrangements in comparison include a fixed rental and extended lease period, and importantly provide long-term operating and rental certainty for Costa in relation to our citrus and berry assets.”
Due to these new leases, Costa’s 2022’s earnings will be $5 million higher, while profit after tax will be $6.4 million lower.
Costa is Australia’s leading grower, packer and marketer of fresh fruit and vegetables, which includes berries, mushrooms, glasshouse tomatoes, citrus and avocados.
On the market today, Costa ended the day down 0.66 per cent to close at $3.03 per share.