Manchester-based property company, Edgertonz is bringing farms with supermarket contracts already in place to the investment market early next year.
Edgertonz will be launching its farms to investors in Spring 2021. The farms coming to market through Edgertonz will based in the South East, around the Essex town of Debden.
Included in the investment will be permission for homes and other buildings on the land as well as supermarket contracts, increasing the value of the land further. The expected annual returns from these farms will be approximately 5%.
The fund initially purchased 18 parcels of farmland, with the aim of providing investors with prospective long-term returns of between 7 – 8%. The offer hopes to stand out from previous investment opportunities as the farms already hold contracts with big name supermarkets.
Edgertonz anticipates that the ‘untapped’ farmland sector is set to become a lucrative investment opportunity in 2021, as the UK leaves the EU and demand soars for substantial agricultural production space, as previously only 0.5% of farmland has changed hands every year in the UK.
“We’re really excited to announce farms as our brand-new investment opportunity,” said Richard Peck, managing director at Edgertonz. “As a relatively untapped sector, farmland really is the up and coming asset for those looking to invest in a secure investment.”
“In terms of the global food and energy security, farmlands’ importance is second-to-none. Investors understand this, which has resulted in a 12% rise in global farmland value, meaning it has outperformed numerous other commodities.
“We’re looking to market farms which are already producing crops, are already let and have supermarket contracts in place, ensuring dividend yields for investors. With this in mind, investment in farmland provides a safe, secure and recession proof way of investing.”