Danish farm asset manager gets €10m family office backing

UK, Dutch and Asian investors were among those who injected equity into FarmCo, in a sign of appetite for real assets and a ‘favorable outlook’ for Danish farmland assets.

FarmCompany, a Danish agricultural asset manager, has completed a capital increase via the issue of €4.5 million in new shares to a group of international investors.

The transaction brings the total equity raised by FarmCo to nearly €10 million, boosting its gross assets to €17 million. “It is an important step towards the company’s significant growth strategy and expanding its shareholder base to include local and international investors,” FarmCo said.

The company’s backers this time round include Danish, UK, Dutch and Asian family offices who “recognize the attributes of agricultural real assets and the favourable outlook to invest in Danish farmland assets,” FarmCo added.

Founded in 2009, the company currently owns three farms in western Denmark with an aggregate size of 550 hectares. These grow a variety of crops including corn, wheat, oat, barley and rapeseed.

Two-tier returns

Blue Harvests, a Geneva-based asset manager, acts as investment adviser to FarmCo, which describes its mandate as one focused on long-term returns stemming from the capital appreciation of its properties and stable rental income from tenants.

The company describes Denmark as “one of the most efficient and knowledge-based agricultural nations in the world,” owing to the proportion of its landmass dedicated to the sector (63 percent), its strength as an exporter of cereals, dairy products and pork, and its overall production capacity, enough to feed three times its population.

FarmCo aims to invest in and run 10-15 farms in Denmark, with a total size of more than 5,000 hectares, integrated into clusters. Its farming model combines the leasing back of farms to local farmers with joint operations with them, “keeping a flexible approach according to the local conditions and market dynamics.”