Farm investor to float on AIM next month
BRAEMAR UK Agricultural Land, a holding company which gives investors access to British farmland, is to float on the AIM market in July.
The company, part of the Hale-based Braemar Group, was set up in December 2007 to give investors the opportunity to invest in the UK farming market.
It has so far raised £2.24m net of expenses, part of which was used in November to purchase 310 acres of arable land in Lincolnshire, which is being farmed by the company.
When it floats Braemar UK Agricultural Land intends to raise up to £20m by way of an offer for subscription, subject to a minimum fundraising of £5m.
The company said the proceeds will be used to acquire additional plots of bare arable land which will be farmed to produce a range of crops suitable for use in food, animal feed or bio-fuel production.
The land will be farmed by contractors rather than let to tenants, to remove the risk of tenant default.
The company said in a statement: “It is intended that the business will not be geared, reducing the potential discount to net asset value post-admission. The business has been established in such a way as to look to qualify for IHT relief.”
It added: “Braemar UK Agricultural Land plc offers investors the opportunity to invest in farmland and a farming business without the inconvenience of holding land directly. Investors should benefit from any long-term rise in agricultural land prices as well as the prospect of income from farming.”
Dan Bate of WH Ireland said: “We are very excited to be involved in the proposed flotation of Braemar UK Agricultural Land plc. General trends in agriculture and particularly in farmland values, together with the potential advantageous tax treatment associated with any investment, create an attractive combination for long-term investors irrespective of global stockmarket turmoil.”
Andrew Christie-Miller is to be non-executive chairman, with Marc Duschenes, who is chief executive of Braemar group, as investment director and Martin Robinson as commercial director. Andrew Pearce, head of Chesterton Humberts’ country division, joins as non-executive director.
The broker and corporate adviser to the proposed float is WH Ireland Limited. Beachcroft has been appointed as the company’s corporate lawyers, with PKF as reporting accountants and Cobbetts as lawyers to WH Ireland. Lupton Fawcett acted on the acquisition of the land in Lincolnshire and has been retained as the group’s property lawyers.
