US farmland investment trust seeks to raise £200m in London IPO
Intl Farming Investment Management (IFC) is seeking to raise £200m (€236m) as it lists a US farmland investment trust on the London Stock Exchange.
IFC said The Sustainable Farmland Trust will invest in a performing and diverse portfolio of US farmland assets held in the open-ended IFC Core Farmland Fund and core-plus farming and agricultural supply chain and infrastructure assets predominantly located in the US.
The manager said The Sustainable Farmland Trust is targeting a net initial yield of 4.5% and a net asset value total return of 7 to 9% per annum on the basis of the £1 initial issue price, once fully invested.
Andy Crossley, chair of The Sustainable Farmland Trust, said: “We are delighted to be launching the first farmland-focused investment company listed on the London Stock Exchange. We believe that the company is perfectly positioned for the current inflationary environment, with outstanding risk-adjusted economic returns while also providing a sustainable and appropriately managed food source.
“We believe this unique and highly scalable asset class has enormous potential to provide long-term returns from a combination of both income and capital growth that historically outperform further in an inflationary environment.”
Charlie McNairy, CIO of Intl Farming Investment Management, said: “We are proud of our deep agricultural heritage and the track record we have built at IFC managing over 420,000 acres, with a technology-focused approach yielding both income and capital growth.
“Our proven track record of success has perfectly positioned us to launch The Sustainable Farmland Trust today at a highly opportune time in the sector. We believe that the long-term secular trends, rapidly changing farmer demographics and inflationary economic environment makes this a particularly attractive asset class for investors seeking inflation protection and portfolio diversification.”