Gladstone Land Corporation Acquires Nut Orchard and Option to Purchase Stored Water in California; David Gladstone and Bill Reiman Discuss
- by Lilian Diep
MCLEAN, VA - Gladstone Land Corporation is aiming to become a major nut owner in the state of California. Recently, the corporation announced it has acquired 1,284 gross acres of farmland, including over 1,200 planted acres of pistachios and almonds (a portion of which is organic), located in Kern County, California, and 19,670 acre-feet of stored water (equal to approximately 6.4 billion gallons) located within the Semitropic Water Storage District water bank for a total of approximately $43.0 million.
“We are pleased to be expanding our relationship with a very fine tenant who has a long history of farming in the area,” said David Gladstone, President and Chief Executive Officer of Gladstone Land. “All of our farms continue to have adequate water. We believe the additional water we’re buying in this transaction will help the production on this farm continue at good levels for many years, while also providing additional security to other farms in the area if there is ever a need for additional water.”
This recent transaction is the final closing of a previous three-part acquisition originally made in June for approximately $25.4 million. In August, Gladstone closed the second part of the acquisition, when it acquired $14.8 million worth of land that included 479 gross acres of farmland and 5,000 acre-feet of stored water.
With this current transaction on the books, Gladstone will have invested approximately $84.2 million in the nut orchard and stored water operation, stated the release. In total, the company will have secured over 14.6 billion gallons in water and over 2,277 planted acres of almonds and pistachios.
“We are happy to announce the closing of the third and final phase of this transaction in Kern County,” said Bill Reiman, Executive Vice President of Gladstone Land. “We are looking forward to a successful future with this property and new tenant. From the day we closed the first phase of this deal, we realized benefits to our overall business, and we are excited about where this will lead us in the future.”
In connection with the acquisition, Gladstone Land entered into a 10-year, triple-net lease agreement for the farmland. The company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 159 farms, comprised of over 108,000 acres in 14 different states and 45,000 acre-feet of banked water in California, valued at approximately $1.4 billion.
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