Belgian investors acquire Slovak farm

The investors have not only acquired a Slovak Farm on high quality owned land but were able to double the size of the land within 2 years through additional land acquisitions.

Situation

Agri investor wants to acquire a farm, purchase additional land and have the properties being managed by a reliable local partner

In 2014 a group of private investors from Belgium performed an investment analysis of the agricultural sector in Central and Eastern Europe. Based on the outcome they decided to go for a substantial investment in Slovakia. Their goal was to acquire a running farm with lands in ownership and to extend operations by investing into new lands. By leasing the farm to a reliable local farmer the investors aimed to secure a direct return on their investments and profit from price increases of agricultural land. Another goal was to add additional value by investing into (re)construction of farm buildings and building new irrigation systems. The investors have a long term investment horizon of 25 years or more. To realise these goals and to assign a professional local partner, the investors approached Pro4CE to assist them during the different stages and establish long term cooperation.

Pro4CE consulting and brokerage role

Contracting of selecting farm, managing the properties and acquisition of additional land

Based on requirements of the investors, Pro4CE assisted in all phases of acquisition, including around 200 hectares of high quality soils and a farmyard with storage buildings. Following the acquisition, Pro4CE further assisted in leasing out the farm to a reliable farmer. To improve conditions for the farmer, Pro4CE initiated a full reconstruction project of the storage building, arranged financial state support (subsidies) and developed a new water well. Subsequently, Pro4CE set up a land acquisition scheme that enabled the investors to acquire additional high quality agricultural lands. Moreover, Pro4CE is assigned as the local property manager on behalf of the investors, managing land lease contracts, collection of rent, communication with relevant institutes and company representation.

Outcome

High quality investment in an agricultural farm and farmlands that are well managed by a local property manager

The investors not only acquired a Slovak farm on high quality owned land, but were able to double the size of that land within 2 years through additional acquisitions. The properties are rented out to a reliable farmer and continually managed by Pro4CE. This set up enables the investors to further extend their land ownership in the future and add value to their investments.

“Pro4CE has played a key role in securing the first deal and in extending and improving our operations in Slovakia. Very direct and practical support from Pro4CE enables us, as investors, to realise our long term goals in agricultural real estate investments and enables the farmer to improve its operations, especially in growing and storing of potatoes.”

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