About the Fund > Portfolio
Map of Fund's land
Portfolio
In the end of January 2010, ELARG Agricultural Land Opportunity Fund REIT owns 29 300 hectares of agricultural land in the entire country. The land is located within the territory of over 1000 populated areas in total throughout the whole of Bulgaria. The avarege size of acquired land in one territory is circa 18.6 ha. The main goal and challenge which the Fund faces is the consolidation of the agricultural land. This process adds value to the price of the land and will wncorage the investments in technologies.
The average acquisition price depends on the location of the land and the category. The average acquisition price is 1.121 Eur/ha
According to its prospectus,the company is about to increase its portfolio to 40 000 hectares of agricultural land.
The portfolio of ELARG Agricultural Land Opportunity Fund REIT is managed by Agromanage AD. You can read more information on the fund-servicing company, its functions and responsibilities here.
You can view the chronology of acquisition of agricultural land by ELARG Agricultural Land Opportunity Fund REIT here.
Purchase Criteria
The price policy of ELARG Agricultural Land Opportunity Fund REIT for each territory, belonging to a populated area, in which the fund buys land, is the result of combining the following main criteria:
Acquisition cost
The acquisition cost does not exceed the market value of the relevant category of agricultural land in the relevant land belonging to the populated area.
Quality of Agricultural Land
For the most part, the fund purchases agricultural land, which is suitable for cultivation of agricultural crops.
Expected Profitability
In the selection of which specific plots to purchase and the determination of the purchase price, a report on the current and expected rent for the relevant plot of agricultural land must also be rendered.
Opportunities for Concentration
Agricultural land, concentrated into the land belonging to one populated area, is significantly more sought after by agricultural producers, which increases its rent and accordingly its market value. For territories belonging to populated areas, wherein the fund has achieved concentration of land or has serious grounds for believing it can achieve such concentration, higher prices are set, which in turn increases the size of land acquired in such types of territories belonging to populated areas.
Opportunity for Expansion
The price policy of the fund takes into account the circumstances with respect to the opportunity for natural expansion of already purchased or about-to-be purchased new plots.
Geographical Location
The strategy of ELARG Agricultural Land Opportunity Fund REIT is to distribute its portfolio of agricultural land across areas, in which the fund will endeavour to concentrate its land, or in other areas, wherein it has a significant investment interest.
