Fund manager Centuria Capital is accelerating its expansion into Australia’s agriculture sector, taking control of a $444 million unlisted fund in a move that significantly lifts its exposure to alternative real estate investments. As reported by The Australian Financial Review, the transaction marks one of Centuria’s largest steps yet into agri-focused assets as the group broadens its diversification strategy.
Centuria has acquired Arrow Funds Management, along with the management rights to its Arrow Primary Infrastructure Fund. The fund holds 22 agricultural assets ranging from poultry farms and pork facilities to almond, macadamia, and mango orchards, as well as vineyards and a large organic glasshouse. The purchase boosts Centuria’s agriculture assets under management to approximately $1.3 billion, representing an 85% increase since the start of the financial year. This follows the group’s $168 million purchase of Australia’s largest hydroponic glasshouse operation just last week.
A Strategic Pivot Toward Alternative Real Estate
With more than $20 billion in funds under management, ASX-listed Centuria has been steadily moving beyond traditional real estate categories, including offices and retail centres. Its leadership has made a deliberate shift into alternative asset classes, recognising the long-term resilience and income potential of agribusiness-linked properties.
Andrew Tout, Centuria’s Head of Agriculture, says the strategy is the product of years of groundwork. The focus now centres on risk-managed, technology-enabled farming environments, which offer stable returns and protect assets from climate and operational volatility.
Technology-Led Farming Reduces Operational Risk
A key investment theme emerging from Centuria’s agri expansion is its emphasis on controlled-environment agriculture, from advanced irrigation systems to full-scale glasshouse operations. These assets, which rely heavily on modern infrastructure and technology, help minimise typical farming risks such as weather variability, water scarcity, and crop failure.
“Our goal is simple: provide solid cash returns while investing in exceptional physical assets,” Tout explains. By targeting operations where technology mitigates traditional agricultural risks, Centuria positions itself as a landlord rather than an operator. Farms are leased under triple net agreements, ensuring tenants cover outgoing costs while providing Centuria with predictable income streams. The Arrow Primary Infrastructure Fund boasts an average lease term of nearly 13 years, supported by almost 500 investors.
Backed by Australia’s Major Primary Producers
Some of Australia’s most established agribusiness names, Baiada Poultry Group, Select Harvests, Nutrano Group, Pace Farms, and SunPork Group, are among the tenants within the Arrow portfolio. The fund’s assets are heavily weighted toward domestically consumed perishables, enabling faster turnover and reducing exposure to export, currency, and commodity price volatility.
By prioritising assets that feed the domestic market, Centuria aims to create a lower-risk, higher-certainty environment for investors. The strategy not only reflects the shifting dynamics of agricultural investment but also reinforces Centuria’s growing presence in a sector poised for long-term structural demand.
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