A 300 hectare avocado orchard at Pemberton was deemed viable based on a feasibility study completed by Alterra.
The study sought to test the viability of the proposed development and identify critical issues that may impact its bankability.
The development will cost $40.6 million and last for at 30 years, delivering a strong, double-digit internal rate of return.
Completion of the development could be achieved within three years, according to the study.
Carpenters Beedelup Pty Ltd (Carpenters) was established earlier to develop the project and sought to raise funding.
The majority of the funding will be sourced from external equity and debt providers, with Alterra retaining a substantial minority interest.
Alterra will provide long-term management services to the project.
In addition, it is entitled to performance fees for both operational outcomes and any project sale to third parties.
With the feasibility study now complete, discussions with both equity and debt providers are underway with first external contributions expected in early 2021.
Subject to availability of capital, Alterra plans to proceed with a 2021 planting of up to 50ha.
The balancing 245ha will be planted over two years through to 2023.
To date, Alterra has incurred direct costs of circa $1.4m in priming Carpenters, including funding an initial 5ha planting in October 2020 that has yielded crucial research data, including the performance of higher-density planting to optimise the full 300ha planting. Research is showing that increasing the number of trees per hectare, if successful, could result in a 67 per cent higher yield per annum (up to tree age six) based on yield performance data provided by French's Group.
"In pursuing this opportunity, we are adopting conservative assumptions around yield and market prices," said Alterra chief executive officer Oliver Barnes.
"However, we are also applying the best available technologies and horticultural practices to ensure Carpenters has the best chance for outperformance."