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Vision & Mission > Investment Catalog > Farmland Investment

Business model, investment in Farmland South East Europe

  • In recent years, the investment characteristics of farmland have encouraged institutional investors to enhance their focus on this asset class.
  • The trend is most common among institutional investors in the US where investors like CalPERS and TIAA-GREF have invested in agriculture. 


  • Investors have demonstrated a growing interest in farmland investment. Due to ownership regulations, this trend has not been widely followed in Western Europe, but in several Central and Eastern European countries where such restrictions do not apply, investors have acquired farmland.
  • Developers with long term experience in profitable farming assists investors in their acquisition of farmland in the region; an investment through the developers entails no developer risk. Furthermore, the developers experienced farming teams can manage the investment.
  • The investor leases the land to a professional farmer. As the farmer does not have to achieve a return on the land investment, the farmer is willing to pay a significant portion of the profit from operating activities to the landowner as lease rental. By entering into 5 to 10-year lease agreements, the farmer gets access to the same economies of scale, as ownership of the land would provide.
  • Another business model is to buy up existing farming companies, cooperatives and from there develop a strong profitable business case. 
  • The investors are involved in the purchase and management of farmland on behalf of landowners.
  • “The investor leases the land to a professional farmer. As the farmer does not have to achieve a return on the land investment, the farmer is willing to pay a significant portion of the profit from operating activities to the landowner as lease rental. By entering into 5 to10-year lease agreements (or longer) the farmer gets access to the same economies of scale as ownership of the land would provide”.
  • The investors creates green field projects or purchases carefully selected farms in Central and Eastern Europe for consolidation, development and finally selling on to farmers and investors wishing to capitalise on this growing region.
  • The concept is based on presence, experience and professional insight into conditions in each country. We also ensure legislative certainty, international financing, environmental and building approval as well as EU investment subsidies.
  • Among our key advantages is investor’s long-time farming experience and local presence on the ground with own teams. The investors appreciate that farmland investments, entail no developer risk and all investment processes are wholly managed by the farm management teams.
  • The investors have invested in large-scale agriculture projects in the Central and Eastern Europe now interested in projects in Serbia and Croatia. During this period the investor has obtained thorough market knowledge and long-standing experience from agricultural sector investments in Central and Eastern Europe. 

  • The developer work is based on an investment concept that has delivered proven results for more than ten years and encompasses the entire development process: acquisition, consolidation, transfer and lease to professional farmers. This is complemented by developer’s capacity to manage and administer the investment. The investments, therefore, can be regarded as passive as the developer develops and manages these for investors.

 

We are looking for the following type of farm investments:

  1. Green field farm projects, farming and chicken production, up to 1.000 ha
  2. Green field farm projects, plant cultivation, mainly wheat, rape, sunflower and corn. Ultramodern farm with completely new farm buildings and machinery, operated by the developer on behalf of the investor, typically under a 5-years administration and management agreement up to 5.000 ha
  3. Green field farm projects, new type of productions, after carefully investigation, feasibility, due diligence, could be in Joint Venture with local partner, from 1.000 – 5.000 ha
  4. Purchase of former stated owned farms and cooperatives, developer and investor taking over the commenced a thorough renovation to bring the farm up to Western European standards, specializes in pig, milk and plant production, producing slaughter pigs, milk and grains/corns including animal feed.
  5. Fruit and vegetable production, large scale orchards, integral production including state-of-the art greenhouse capacity, ultra modern calibration, packing and storage facilities, typically ULO or cold storages for frozen products.
  6. Acquisition and resale of farmland to investors. The investors, typical experienced farmers, operating the land them selves, typically from 500+ ha land.

 

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