Lakewood Asset Management launches Australian agricultural investment
PRWEB | 12 March 2013
Lakewood Asset Management is pleased to announce the launch of its latest agricultural asset project -- Australian Farmland in partnership with Agri Firma Capital.
Following on from the success of Lakewood’s African agricultural offerings, this new property offers investors exposure to the fast-growing agricultural sector in a low-risk setting. Australia is a stable, developed country with a currency that holds IMF Reserve Status and one of the world’s lowest debt-to-GDP ratios at around 22.9 percent. The exceptional fiscal stability of the country, as well as its proximity to the fast-growing tiger economies of East-Asia make it an ideal investment destination for those looking for impressive returns in a low-risk environment.
Based in Western Australia, this major opportunity offers the potential for attractive annual income as well as substantial potential capital gains. Investors can expect at least four years’ income in the minimum five-year investment period, projected at 9 percent per annum gross, representing their share of harvest proceeds. There is also potential for significant capital appreciation of the land. In 2011 alone, land prices in the area this project is located rose by 11 percent.
In this period of economic uncertainty, agricultural assets have become an increasingly popular way to hedge against inflation whilst enjoying the benefits of a regular income. Farmland regularly outperforms other traditional assets and Lakewood believes that the strong underlying fundamentals make this investment a particularly attractive diversifying asset. Wheat prices remain at historically high levels and this is set to continue due to the increasing demand for staple crops from the ‘super’ economies of Asia and Latin America. Australian farmland is still a fraction of the price of that of North America and Europe, despite having the same ‘comforts’ of investment, but the recent convergence in prices suggests that those who invest now will reap the benefits of significant land appreciation.
Lakewood’s CEO said, “Lakewood remains committed to providing top-tier alternative investment options to enhance our investor’s total portfolio performance. Furthermore, our team of market experts remain laser-focused to identify opportunities in the agricultural space, which has been singled out to be one of the fastest growing sectors in the global economy.”
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