About the Fund > Portfolio
Map of Fund's Land
Portfolio
As of 31 December 2011, ELARG Agricultural Land Opportunity Fund REIT owns 24 226 ha 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 18.27 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 1129 Eur/ha
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.
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 Price
The acquisition price is not higher than the average market price for the corresponding category of agricultural land in the respective territory.
Quality of the Agricultural Land
The Fund buys only agricultural lands which are suitable for cultivation of agricultural cultures (wheat, maize, barley, sunflower, rapeseed and others). The acquired agricultural lands are fields of 1st to 5th category, while lands of lower category may be acquired by exception if they are arable and suitable for cultivation.
Expected Earning
The levels of the current or expected rental rates for the relevant parcel of agricultural land are obligatory taken into account at the selection of specific parcels for purchase and when determining the acquisition price.
Possibilities for Concentration
Concentrated agricultural land within a territory is significantly more demanded by agricultural manufacturers, which increases the level of its rental rate, respectively its market price. Higher acquisition prices are determined for territories in which the Fund has achieved or believes to be able to achieve concentration of land, which prices increase the land acquired in such type of territories.
Possibilities for Consolidation
Due to the great fragmentation of land in Bulgaria, larger parcels of land have higher market prices. The Fund's pricing policy takes into account the possibilities for natural consolidation of already bought land or new parcels pending purchase.
Geographic Location
The Fund's strategy is to allocate its portfolio in areas where the Fund will strive to concentrate its lands or in areas with strong investment interest. The goal is lands in these areas to be subsequently traded for lands in areas where the Fund will concentrate its portfolio.
