SANTA PAULA, CA - Limoneira is continuing its expansion in California with its latest land-grab.

The company entered into a purchase agreement to acquire 757 acres of citrus orchards in the San Joaquin Valley for about $15.1 million, about $19,947 per acre.

The purchase, valued at approximately five times its latest acquisition in the area, includes lemon, orange, and specialty citrus orchards. The transaction is expected to close on November 30, 2015.

In a press release, Limoneira states that the orchards are being acquired “pursuant to purchase options contained in certain operating leases the Company has had since 2012 for approximately 1,000 acres of lemon, orange, specialty citrus, and other crops,” referred to as the Sheldon Ranch leases.

The lease agreements include base rent of $500 per acre and contingent rent of 50 percent of the operating profit of the leased property as defined in the lease agreements.

Total rent expense for fiscal year 2015 on the acquired property is estimated to be approximately $900,000 as of the expected closing date of the transaction and was approximately $1.6 million for fiscal year.

Limoneira