DGC Investment Consultants has introduced investment portfolios of tenanted UK farmland that aim to give investors annual income yield of 6.3 per cent.
The portfolios are available to retail and mid-range investors with capital of GBP25,000 to GBP5m.
Farming tenants have the option to revalue and repurchase the land from investors at seven years.
"Agricultural lending has all but dried up in the credit crunch, and farmers are desperate to access capital to refinance previous loans and to fund expansion," says David Garner, managing partner at DGC Investment Consultants.
"Our asset management partners locate candidate farmers and complete intensive financial audits, ensuring that we partner only with farmers with excellent debt to equity ratios and strong and consistent cash flow. We then value have RICS perform a valuation of the farmers key asset, his land, and purchase the land from them on a seven year lease back basis, creating an extraordinary yield of 7.3 per cent (6.3 per cent after management fees). The farmers pay their rent quarterly in advance, creating a strong income for our clients.”
Savills and Knight Frank have projected annual value growth at around eight per cent for the coming years for UK agricultural land.
DGC Investment Consultants is an alternative investment advisory servicing a network of high net worth investors, retail investors, and family offices.
