Agcapita prepares for the sale of Agcapita Farmland Fund II
LIGHTNING RELEASES 7/23/2014 — As per the mandate of the fund the management team of Agcapita is preparing for the winding-up process and has retained the services of a third party appraiser to produce a valuation report for the fund’s farmland portfolio.
Fund II holds approximately 13,500 acres of prime farmland geographically diversified across Saskatchewan with a strong base of seasoned cash renters. Latest figures released by Farm Credit Canada shows that, as Agcapita predicted, Western Canadian farmland has appreciated steadily since Fund II’s inception in 2010. Fund II’s exit will be the second exit provided by Agcapita to its investors after the successful exit of Fund I.
Agcapita co-founder Stephen Johnston commented “we are extremely pleased with the returns generated by the sale of the Fund I portfolio and believe they represent a validation of the Agcapita investment premise. Similar to Agcapita Fund I, Agcapita’s other Funds also have constructed diversified portfolios of Saskatchewan farmland with no use of leverage in keeping with our overall philosophy to actively reduce risk and return volatility for our investors. Accordingly, we believe that fund II’s exit will also provide impressive returns.”
Stephen added “our investment model leads us to conclude that Saskatchewan farmland continues to trade at a fundamental discount to other Canadian and global jurisdictions raising the prospect of further superior absolute and risk adjusted returns in this asset class.”
Agcapita Farmland Fund V was launched on July 16th, 2014 with a $20 million offering. Agcapita is the only farmland investment fund eligible for registered plans (RRSP, TFSA, RESP etc). Fund V is open to investors in BC, Alberta, Saskatchewan, Manitoba, and accredited investors in Ontario.
This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words “anticipate,” “expect,” “may,” “should” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by Agcapita, if any, reflect Agcapita’s beliefs and assumptions based on information available at the time the statements were made (including, without limitation, that (i) the demand for agricultural commodities will continue to grow at a pace that is unlikely to be matched by growth in agricultural productivity, and (ii) investment demand for tangible assets such as agricultural commodities and farmland will continue to increase for the foreseeable future). Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Factors which could cause actual results or events to differ materially from current expectations include, among other things: risks associated with the ownership and operation of farmland, including fluctuations in interest rates, rental rates and vacancy rates; general economic conditions; local real estate markets; supply and demand for farmland; competition for available farmland; weather; crop diseases; the price of grain and other agricultural commodities; changes in legislation and the regulatory environment; and international trade and global political conditions. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. Agcapita’s undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.