AgroEnergy purchases, leases and operates farm and farm land in East Germany with the objective to create sustainable tangible asset values, generate operating returns and participate in potential value increases.
AgroEnergy operates the purchased or leased land and farms professionally with its own team. If circumstances permit, existing structures and employees are taken over. The focus is on traditional crop farming for food and feed production. Energy crop shall increasingly be added.
Private and institutional investors can diversify their portfolio by investing in AgroEnergy. Farmland and farming as an asset class has an attractive risk-profile: total returns of up to 8 per cent p.a. are expected on the basis of operating results and value increase. Total loss risk is very limited, but the tangible asset character provides a good hedge against inflation.
AgroEnergy with its financial power and professional management is a very attractive potential partner for farmers who may seek a solution for succession issues.
AgroEnergy has successfully built, operated and exited a first venture and has now started the second:
- AgroEnergy 1 was founded in 2008 and capitalised with 35 million Euro. It acquired 4,200 hectares in East Germany and was sold in 2011. Investors yielded an average return of 13.5 per cent p.a..
- AgroEnergy 2 was founded in 2011. It currently negotiates the acquisition of some 20.000 hectares in East Germany on an exclusive basis. It shall be capitalised with 120 – 150 million Euro.
Initiators and managers of AgroEnergy combine unique competences private equity management, farm management and market knowledge.