DENVER, Jan. 21, 2021 /PRNewswire/ — Farmland Companions Inc. (NYSE: FPI) (the “Business” or “FPI”) announced right now that its previously disclosed negotiations relating to an opportunity zone fund have resulted in the signing of a residence sale and prolonged-phrase management agreements with Promised Land Possibility Zone Farms I, LLC (“OZ Fund”), a personal financial commitment fund centered on acquiring and bettering farmland in skilled option zones in the United States (“QOZs”), as specified underneath U.S. tax provisions enacted in 2017. FPI will provide in a house administration capacity for the OZ Fund and will have the ability to purchase equity pursuits in the OZ Fund. The Enterprise will also have a ideal of initially offer to purchase houses owned by the OZ Fund.
“The romantic relationship with the OZ Fund reflects a strategic initiative to use privately capitalized vehicles to raise our belongings under administration and deliver service fees-for-assistance without having the need to have to increase equity money at possibly dilutive rates,” mentioned Paul Pittman, FPI’s Chairman and CEO. “As the OZ Fund grows with new homes, our house management profits will increase as properly as the all round scale of the farmland that we control. The transaction makes benefit for FPI shareholders by marketing FPI land at a quality to ebook price whilst permitting us to retain administration of the houses in trade for management costs.”
The house sale settlement offers for, amongst other items, FPI’s potential sale of around $47 million and 6,500 acres throughout 12 farms. The first six farms are expected to close by March, but all closings are topic to customary ailments, including funding, and other contingencies. The OZ Fund is also targeting farmland owned by third parties and situated in QOZs for possible acquisition. FPI has dedicated to fund 10% of the equity needed to receive farmland owned by 3rd get-togethers up to a maximum of $20 million in exchange for pursuits in the OZ Fund. FPI will serve as house supervisor for all farmland property owned by the OZ Fund in trade for assets management service fees.
The OZ Fund was created to get, increase, and encourage financial advancement of land situated in QOZs. QOZs are sure economically distressed communities in the United States exactly where new investments, below specific situations, may well be eligible for preferential tax treatment method. The OZ Fund was started and is controlled by Servant Monetary, a Chicago-primarily based investment decision administration firm.
“This is a win-gain,” commented John Heneghan, President of Servant Monetary. “Promised Land Prospect Zone Fund delivers new sources of cash to farmland, raises economic capacity and productiveness for farmers, and promotes work throughout agricultural communities. We feel the OZ Fund offers economic, environmental, and social impacts that are compelling for buyers. We are pleased to collaborate with Farmland Partners, the farmland industry’s primary REIT, on our exceptional and impressive prospect zone car.”
About Farmland Companions Inc.
Farmland Partners Inc. is an internally managed true estate enterprise that owns and seeks to get substantial-excellent North American farmland and can make financial loans to farmers secured by farm real estate. As of the date of this release, the Corporation owns about 155,000 acres in 16 states, like Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have about 26 crop styles and about 100 tenants. The Organization elected to be taxed as a serious estate financial investment rely on, or REIT, for U.S. federal revenue tax applications, commencing with the taxable 12 months ended December 31, 2014. Additional information: www.farmlandpartners.com or (720) 452-3100.
About Servant Monetary
Servant Economical, Ltd. is a Chicago-based mostly investment management organization established in 2003. The organization serves the diverse expenditure, danger administration, and finance demands of individuals, significant web truly worth clients and family workplaces. Servant Financial focuses on alternate investments – private equity and hedge funds, ETFs, and socially liable investments. Added information: www.servantfinancial.com or (630) 264-0127.
This press release features “ahead-searching statements” in just the that means of the federal securities laws, like, without having limitation, statements relating to the transaction, the predicted timeline for closing, the Company’s ability to promote added properties to the OZ Fund, the anticipated gross proceeds from the income to the OZ Fund, the expected managements fees to be been given by FPI, and the skill of the OZ Fund to receive additional farmland attributes. Forward-looking statements typically can be discovered by the use of forward-seeking terminology this kind of as “may possibly,” “should,” “could,” “would,” “predicts,” “potential,” “continue on,” “expects,” “anticipates,” “potential,” “intends,” “designs,” “believes,” “estimates” or similar expressions or their negatives, as nicely as statements in potential tense. Although the Corporation thinks that the anticipations mirrored in this sort of ahead-seeking statements are primarily based upon fair assumptions, beliefs and expectations, these types of ahead-wanting statements are not predictions of upcoming events or ensures of foreseeable future efficiency and our real benefits could vary materially from those set forth in the ahead-seeking statements. Some components that might result in these types of a variation involve the skill to consummate the transaction explained over, satisfaction of certified chance zone laws as established by OZ Fund third-party advisors, and the general economic disorders. Any forward-wanting info presented herein is designed only as of the date of this push release, and the Firm does not undertake any obligation to update or revise any ahead-on the lookout information to replicate adjustments in assumptions, the incidence of unanticipated situations, or in any other case.
Source Farmland Associates Inc.