A landmark acquisition recently took place in the olive industry, as Gladstone Land Corporation completed its most recent transaction. The real estate investment trust purchased 2,285 gross acres of farmland in Tehama County, California, for a total of $37.8 million from Boston, Massachusetts-based Solum Partners. Additionally, the company inked a strategic agreement with California Olive Ranch.
“We value our relationship with California Olive Ranch and are pleased with the opportunity to increase the amount of land we lease to them,” said David Gladstone, President and CEO of Gladstone Land. “We have been evaluating opportunities to buy land in Northern California, and we believe this orchard is a great addition to our portfolio, as we like the diversification that olives provide. We continue to evaluate additional farms to acquire as we work toward another successful year.”
With this latest deal, Gladstone Land purchased 2,285 additional acres of farmland in Tehama County for approximately $16,543 per acre.
In connection with the acquisition, stated a press release, Gladstone Land also entered into a 15-year, triple-net lease agreement with California Olive Ranch, reportedly one of the largest millers of olives for extra virgin olive oil (EVOO) in the U.S. and the producer of one of the nation’s top-selling 100 percent California EVOOs.
“We are very pleased to build upon our relationship with California Olive Ranch,” said Tony Marci, Managing Director of Gladstone Land. “This farm near Corning, California, is a very nice olive orchard, and we are excited to increase our farmland ownership within the Sacramento Valley. It was great to work with Solum throughout this transaction, as we were able to achieve the goals of both parties.”
How will this acquisition impact the olive oil market? Keep reading as Deli Market News brings you the latest.
