West Australian agribusiness and Pemberton avocado orchard developer, Alterra Ltd’s shareholder register has been fortified following the sale of a block of shares by former chairman, Trevor Stoney. Existing major Alterra shareholder, Sandon Capital and fellow major shareholders, Emanuel Exports and the Daws family, who came on board six months ago, have stepped up to the plate to boost their holdings to 22.2 per cent and 19.95 per cent, respectively. Each of the company's directors also bought more stock in the recent round of transactions.
Perth-based Alterra says the increased holdings of its major shareholders reflects a confidence in its long-term vision and business model as a manager of agricultural land and water assets.
After initially entering the Alterra register late last year, Emanuel Exports 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.”
Mr Daws’ grandfather Tom founded the privately owned Emanuel Exports and the company’s first shipment of live sheep left Fremantle for the Middle East in 1960.
Alterra has also appointed Mark Clements as a Non-Executive Director and its Company Secretary. He fills the vacancy on the board created by Mr Stoney's departure.
Mr Clements has more than 20 years experience in capital management, finance, financial reporting, corporate strategy and governance, having worked for ASX companies across a range of industries.
Last month the company released a feasibility study on its proposed 300-hectare Carpenters avocado project in the South West town of Pemberton.
Key metrics of the study included an estimated development CAPEX of $40.6 million, a minimum 30-year project life and a double-digit internal rate of return. The study also indicated planting could be achieved within three years.
Alterra intends sourcing most of the funding for the Carpenters development from external equity and debt providers and will look to retain a significant minority interest. Management says discussions are progressing well with equity and debt providers.
Subject to the availability of capital, Alterra says it aims to plant avocado trees on up to 50 hectares this year after an initial test run of five hectares last year. The balance will then be plated out over the subsequent two years through to 2023. It also plans to provide long-term management services to the Carpenters project, a key part of its business model.
Importantly, construction of a 4.1-gigalitre dam on the property has commenced. Originally, the dam was to have been funded by Alterra and work on the dam was earmarked to begin in late 2021.
However, Alterra’s agricultural landlord in the South West has elected to start construction early and directly fund the build.
Alterra is also looking to get more of its proposed land and water projects up this year this and expand its agribusiness foothold in WA’s South West region. It is targeting 500 hectares of avocado development for now.
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By Matt Birney
