16/09/2020 - 15:57

Alterra raises $1.7 million for horticultural projects

16/09/2020 - 15:57

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ASX-listed agribusiness developer, Alterra Ltd, has successfully rattled the tin for $1.7 million following a placement to new investor, Emanuel Exports and existing major shareholder, Sandon Capital Investments. In a boost for Alterra’s financing aspirations for its WA agricultural projects, Emanuel will emerge as a major shareholder with 15 per cent ownership of Alterra’s expanded issued capital, whilst Sandon maintains its 19.2 per cent stake.

ASX-listed agribusiness developer, Alterra Ltd, has successfully rattled the tin for $1.7 million following a placement to new investor, Emanuel Exports and existing major shareholder Sandon Capital Investments. In a boost for Alterra’s financing aspirations for its WA agricultural projects, Emanuel will emerge as a major shareholder with 15 per cent ownership of Alterra’s expanded issued capital, whilst Sandon maintains its 19.2 per cent stake.

Alterra says the funds, most of which came from Emanuel, will go towards supporting the expansion of the company’s south-west agricultural project pipeline and provide working capital to complete a feasibility study and progress the phase one plantings at its 300-hectare avocado development, the Carpenters project, in Pemberton.

Alterra Managing Director, Oliver Barnes said: Alterra is pleased to welcome the addition of a sophisticated investor in the Australian agribusiness and property sectors to our share registry. This investment is a significant endorsement of Alterra’s business model and confidence in our project pipeline.”

“This placement into Alterra allows the company to advance its developments as it continues to scale and unlock greater opportunity for investment in land and water assets in WA.”

Emanuel Managing Director, Nicholas Daws said: “We see this investment as a good logical fit with our existing business interests, and a vote of confidence in WA agriculture which we see has a vibrant and exciting future.”

Under the terms of the capital raise, Emanuel is entitled to undertake due diligence on Carpenters alongside other prospective development investors and Alterra is currently talking to potential capital providers who may be looking to back Carpenters once feasibility studies are completed.

Alterra will now navigate the project through a series of phase one milestones and endeavour to lock in project financing for the larger phase two development. Alterra is looking to have the development capital syndicate for Carpenters in place by next year.

Water storage and capacity are pivotal to Carpenters that used to be a blue gum plantation and the Perth-based company will dip its toe in the water with the planting of an initial five hectares of avocado trees before clearing a 100-hectare parcel of land for the broader phase one development.

It then plans to plant a further 90 hectares of avocado trees in 2021, also as part of phase one.

The appearance of Emanuel towards the top of the Alterra share register looks to be a strategic move by the company given Emanuel’s deep pockets.

Daws’ grandfather Tom started the privately owned Emanuel in the mid-1950s and the company’s first export shipment of live sheep set sail from Fremantle to the Middle East in 1960.

Nicholas Daws said: “My family has been committed to rural Western Australia for over 50 years, which started with my grandfather in the 1950s. I welcome the opportunity to expand our business operations and continue to invest in and support the WA agricultural sector.”

 

Is your ASX listed company doing something interesting? Contact: matt.birney@businessnews.com.au

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