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Romania Office

Vasile Lascar 102
Apartment 2
Sector 3, Bucharest
Romania
Email: information@pacecapital.co.uk
Tel.: +40 314 326308
Mob. +40 730 202087
Contact: Colin F. Whitfield

 

Home > Investors > Investment Approach > Agriculture

Agriculture

Romania benefits from a large and competitively priced labour force, an ideal climate and trade channel for Central and East Europe. The agriculture sector is set to grow as Western European becomes increasingly uncompetitive. In addition, the price lag in undeveloped agricultural sectors of emerging countries such as Romania, with land prices at 1/3 of Czech Republic and Hungary creates attractive opportunities for capital appreciation through the land assembly component.

The greatest challenge to implementing large-scale mechanised farming is accumulating adequate plot sizes in order to benefit from economy of scale farming. Romania’s land ownership distribution is extremely fragmented with the majority of sites belonging to individuals who inherited plots after the restitution process.

Pace Capital targets areas with strong government level contacts and local partners who specialise in professional farm management.

Acquisition Strategy
Utilise high level local contacts gained through our project identification and fund sourcing services.

Assemble plots of minimum 2000 hectares up to 10,000 hectares.

Asset Management Strategy
Tender Professional Farm Management operators to modernise plant & equipment and cultivate mix of crops to produce annual yield.

Exit Strategy
To sell onto International Farming Corporations and Farming Cooperatives.

ROI and Exit Period
Expected yield 15% p.a. and capital appreciation of 100% over 3 years.

Exit period
3 - 5 years.



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