Gladstone Land Corporation Announces Acquisition of Nut Orchard and Option to Purchase Stored Water in California; David Gladstone and Bill Reiman Discuss
MCLEAN, VA - August has proven to be a fruitful month for Gladstone Land Corporation, as within the past few weeks the company has announced the acquisition of organic farmland in California and Oregon, citrus groves in South Florida, and now a nut orchard in Kern County, California. Additionally, the land purveyor received the option to purchase stored water as part of the recent $14.8 million acquisition deal.
"We are pleased to be expanding our relationship with a strong tenant who has a long history of farming in the area," said David Gladstone, President and Chief Executive Officer. "All of our farms continue to have adequate water. We believe the additional water we're buying in this transaction will help ensure that the production on this farm remains at high levels for many years, while also providing additional security to other farms in the area if there is ever a need for additional water."
The acquisition includes 479 gross acres of farmland, featuring 460 planted acres of almonds, located in Kern County, California. According to a press release, the company also gained access to 5,000 acre-feet of stored water, equal to approximately 1.6 billion gallons, located within the Semitropic Water Storage District water bank.
Gladstone has already entered into a 10-year, triple-net lease agreement for the farmland. This is the second closing of a three-part acquisition that is anticipated to result in total consideration of $84.2 million, with the third part expected to close later this year.
"We are excited to announce the completion of the second phase of this acquisition," added Bill Reiman, Executive Vice President. "We are looking forward to completing the final phase of this transaction and adding this asset to our portfolio. The stored water and tenant have already added value to our business, and we expect this to continue to be the case."
Where will Gladstone make its next move? Stick with us at AndNowUKnow to find out.