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
