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Agricultural productivity in countries such as Russia is suffering from poor soil fertility. There are new technologies on the horizon but investment is needed, writes Roman Mitrofanov.
Wheat farmland
The US-based asset management firm that handles the assets of the Kattegat Trust, a charitable trust, has bought a farm in Romania and is due to complete on a second.
Two high net worth individuals have made $1.5m in soft commitments for direct deals via Black Sea Agriculture.
Farmland values are growing worldwide and at a greater rate compared to other alternative assets such as commercial and residential real estate, according to UK property firm Savills.
In the wake of fund dissatisfaction among pension funds, farmland asset managers want to be flexible with their investment offerings.
Russia's annexation of the Crimean region in the Ukraine may impact neighbouring agri investment communities.
The JV between the Russian and UK firms has started talking to institutional investors and is raising capital for Eastern European Union investments.
Fund II will open up investment to new parts of the Eastern European region and offer a shorter investment period.
A loan by the European Investment Bank will underpin Slovakia’s first Rural Development Programme.
AXA has committed €50m to the Carlyle spin-out’s fund – nearing an expected €180m final close – and will also co-invest the remaining €120m of its CEE fund with Resource Partners.

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