Thursday 19 December 2019 10:18 am

Farmland-focused investment trust eyes $300m UK float

An investment trust focused on farmland has set out plans to float in London, aiming to be the UK’s first listed trust offering investors direct access to the asset. 

The Global Sustainable Farmland Income Trust is seeking to raise $300m from investors to purchase “a diverse portfolio” of farmland around the world.

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The trust will target total returns of seven to eight per cent, according to its prospectus, through lease income and appreciation in the value of the land. 

“Farmland has a historical track record of delivering superior risk-adjusted returns and is underpinned by macro-economic and demographic fundamentals such as a growing population, rising household income and changing diets,” said chairman David Gray. 

“Our focus is on acquiring a diverse portfolio of farmland assets which avoids dependency on any one type of crop or geographical location,” he added. 

The trust is planning to list on the London Stock Exchange in February, when investors will be offered up to 300 million shares at $1 (76p) per share. 

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Capital Advisory Partners will act as the trust’s investment manager.

In its prospectus for potential investors, the trust said it had identified 18 preferred target assets worth $330m for acquisition in the first nine months after its float, and has a further 12 assets in the pipeline.