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Property sourcing

Although most investors entering the asset class for the first time have common elements to their motivations, the emphasis with respect to risk-return varies. For instance, agricultural assets are seen by most as a hedge against inflation or a means to offset risk in other parts of their portfolio, but the income component can be more or less of a priority. Some investors will specify a minimum income requirement of, for example, 5% annually. Others make it clear that although they are looking for a return ON capital, return OF capital should take priority over everything else. For some liquidity is important whilst others are investing for the very long term. All of these objectives impact the property sourcing decision making process in different ways.

Once we have developed an understanding of your portfolio composition priorities, this allows us to build a set of investment criteria which will go on to govern the asset selection process. This can be on the basis of a range of different parameters, including but not necessarily limited to:

  • Income priorities
  • Crop mix and enterprise type
  • Geographical diversification
  • Climate type and risk profile
  • Development potential
  • Leaseback or vacant possession
  • Liquidity

Our property sourcing service generally includes the following components:

  1. Query our real-time database of all properties available on the market (which will include ‘off-market’ properties known only to Land Commodities) to identify possible acquisitions in accordance with your investment criteria.
  2. Produce a shortlist of potential candidates for acquisition. The ‘Shortlist Report’ will contain the following information:
    1. Basic information about the shortlisted properties – Location, logistics access, size, land use, infrastructure and other non-land assets, water resources etc.
    2. Soil type and quality overview.
    3. Basic climate information – Rainfall extent and reliability, temperature averages and extremes.
    4. Pricing guidance – Basic valuation guidance by comparison with other similar properties currently on the market and likely achievable purchase price compared to asking price.
    5. Basic investment analysis – Basic financial modelling of production potential and likely rental and operating income.
    6. Commentary on the suitability of the Land with respect to the agreed investment criteria.

Click here to see a sample of the Market Overview and Shortlist Reports we produce at the property sourcing stage of the investment process.

Whatever the priorities, concerns or aspirations driving your move into agricultural assets, Land Commodities has the expertise and analytical clout to source the agricultural assets needed to realise your investment goals. Whatever the type of property, crops or livestock you are looking to invest in or produce, we will help you locate quality agricultural assets to meet your requirements and do so in a timely, confidential and cost effective manner.