Risk-Adjusted Returns

1. Annual cash yields through the cultivation, harvest and sale of the agricultural production 

2. Land value creation through active asset management

  • Consolidation of smaller parcels of land into efficient farming bases of scale.
  • Investments in modern infrastructure, machinery and inputs.
  • Application of modern operational and agronomical farming practices driving improved yields and decreased operational costs.
  • Implementation of irrigation and use of EU and other subsidies. 

3. Land price appreciation due to

  • Convergence of CEE land prices with its regional and Western European peers.
  • Increasing global demand for food driven by increasing affluence of Asian and other emerging markets.
  • Rising global commodity prices.
  • Decreased supply of arable land due to soil depletion, land scarcity/urbanisation, climate change, and biogas production.
  • Increasing acceptance of agricultural land as institutional asset class.

 

Levers to improve returns

Our aim is to provide above average returns to our investors, with whom we seek a long-term relationship focused on trust, transparency and performance.

  • Intrinsic returns by Managed Value Creation

Land acquisition → land rehabilitation → land consolidation → future value

  • Additional returns by Managed External Drivers

Productivity gains → logistic improvements → standardisation of workflows → commodity scarcity → extending of the business model → gaining synergies

  • Providing increased Final Potential Value