Fund acquires Lincolnshire farmland
Humberts has secured an important first acquisition of farmland on behalf of farmland investment group, Braemar UK Agricultural Land.
The Cheshire-based fund was one of the first set up, over a year ago, to provide investors with exposure to the UK farming market, in this case by acquiring farmland to establish a farming business, with the potential for capital growth.
“We are pleased to have acquired a suitable investment for Braemar UK Agricultural Land,” said Andrew Pearce of Humberts, which acts for the fund. The purchase comprises 310 acres of Grade 2 land in two parcels at Eastville, near Boston, Lincolnshire. It is capable of growing cereals, potatoes and some vegetables and was acquired privately on the basis that the vendor would continue to farm it under a five-year contract farming agreement. The sale price was not disclosed.
“It also offers the benefit of a potential wind farm site, which will, it is hoped, generate further income,” said Mr Pearce. “We are delighted to have found this farm and are working with Braemar in actively seeking further opportunities of this nature.”
Braemar is targeting predominantly arable land, with the intention of establishing a qualifying trade for the company for inheritance tax and business property relief purposes. Investors are mainly non-farming individuals looking for tax shelters. It is to be floated on the Alternative Investment Market next year.
It was initially looking to raise £20m, with minimum £10,000 stakes. One of its main stakeholders has been property magnate and financial trader Vincent Tchenguiz, who has always been interested in “green” investments, including wind farms, and was also one of the big backers of the Farley Group, which acquired agency firm Humberts in a £7.2m deal three years ago.
by Catherine Paice
19 November 2008
Tags: Wind power, Wind energy
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