Costa Group (ASX:CGC) - CEO and MD, Sean Hallahan
CEO and MD, Sean Hallahan
Source: Costa Group
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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.

CGC by the numbers
More From The Market Herald
X2M Connect (ASX:X2M) - Chief Operating Officer, Keith Jelley

" X2M Connect (ASX:X2M) signs two service contracts in South Korea

X2M Connect (ASX:X2M) has secured two new Software-as-a-Service (SaaS) and maintenance contracts with Gochang County and…
North Stawell Minerals (ASX:NSM) - Non Executive Chairman, Jerry Ellis

" North Stawell Minerals (ASX:NSM) extends Gellatlys gold trend to 3.5km

North Stawell Minerals' (ASX:NSM) recent aircore drilling program has extended the Gellatlys gold trend to 3.5…

" Rafaella Resources’ (ASX:RFR) Santa Comba shows improved recoveries

Rafaella Resources (ASX:RFR) has revealed positive metallurgical testwork results from the Spanish Santa Comba project which…
Raiz Invest (ASX:RZI) - CEO, George Lucas

" Raiz Invest (ASX:RZI) FUM surpasses $1 billion

Raiz Invest (ASX:RZI) has reported its funds under management (FUM) has passed the $1 billion benchmark…