Agricultural land is a tangible, secure investment in limited supply and is expected to appreciate in value due to global population and demographic trends underpinning demand. It offers both income and capital appreciation while providing a hedge against inflation and other asset and financial market fluctuations.
Agricultural land and production in CEE provides a compelling risk / return proposition:
- E.g., Romanian land prices are approximately one third of comparable land in Western Europe and convergence is ongoing expected to continue in the near term.
- Ability to increase land productivity (income) through the application of modern operating practices and inputs.
- Ability to acquire freehold land within a stable EU legal and commercial environment.
- Attractive EU land subsidies for cultivated land and EU grants for irrigation and farm equipment.
- Relatively low labor costs.
- Proximity to European markets and favorable transport infrastructure.
Ability to create bespoke transactions providing the desired level of land and operational investment exposure.