buy and lease

The Canadian farmland investment firm could reach $1bn within three years due to a combination of inflation and low financial market yields, says director and co-founder Stephen Johnston.

Roc Partners’ Premium Food Fund was one of three buyers, alongside Primewest and another local buyer, for Harvard University’s Western Rosella portfolio.

The feed mill is the fund’s fourth asset and the first since the purchase of three foundation assets, all of which have been acquired via sale-and-leaseback arrangements.

Primewest will use part of the A$60m raised in an institutional placement to make a cornerstone investment in its first agriculture fund.

Managing director Bill Reiman says covid-19 disruption delayed deal closures but increasing farmer interest in sale/leaseback helped the firm match its 2019 capital spend.

Capital was deployed from the firm’s evergreen ag and timberland vehicle which had a €32m first close at the start of November.

Primewest took over management rights to the Vitalharvest Freehold Trust in June, which is now subject to a takeover bid from MIRA worth approximately A$185m.

Bonnefield president and CEO Tom Eisenhauer explains why investors need to commit to ag now, his firm’s reasons for steering clear of an own-and-operate strategy and the impact of covid-19.

The Diversified Agriculture Fund will deploy approximately A$25m across three foundation assets and will move to an open-end structure to continue raising capital.

Real estate investors looking for steady returns are beginning to view sale-and-leaseback agriculture assets as core investments, Colliers says.