The location of the 24 properties in prime agricultural country, along with a yield of around 5 percent and the potential to generate carbon credits is attracting financial investors first and foremost.
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Milltrust Agricultural Investments has made its first acquisition through its MAI Australia Buy & Lease Fund, a vehicle it launched in June 2016 with the backing of UK institutional investors.
The acquisition of a 16,595-acre farm in southeast Colorado expands the REIT’s presence in hay production following purchase of its first such property last year.
The $69bn pension fund’s commitment constitutes a quarter of the capital allocated to the $400m vehicle.
Strong yields and soybean prices help support Midwest farmland markets widely expected to fall in the year ahead.
David Gladstone reports that the conversion of farmland into suburbs in growing regions of the US helping to support an increase in rental income for the farmland REIT.
The second farmland fund from the San Francisco-based firm will continue to focus on acquisitions in the Mountain West, Pacific, Midwest and Delta regions of the US.
Farmland investment firm Homestead Capital fell $52m short of its target for its first fund last year, but has already surpassed its initial $350m target for Fund II.
Gladstone continues to invest in almond production, this time buying properties with well-developed trees already on-site.
The firm, previously known as UBS AgriVest, now has assets under management of $1.2 billion but still believes row commodity crop farmland is too expensive.