DENVER, Jan. 21, 2021 /PRNewswire/ — Farmland Companions Inc. (NYSE: FPI) (the “Company” or “FPI”) introduced nowadays that its previously disclosed negotiations relating to an possibility zone fund have resulted in the signing of a property sale and lengthy-phrase administration agreements with Promised Land Prospect Zone Farms I, LLC (“OZ Fund”), a private financial investment fund focused on buying and increasing farmland in capable opportunity zones in the United States (“QOZs”), as specified underneath U.S. tax provisions enacted in 2017. FPI will serve in a home administration capability for the OZ Fund and will have the potential to acquire equity pursuits in the OZ Fund. The Enterprise will also have a ideal of to start with provide to acquire properties owned by the OZ Fund.
“The romantic relationship with the OZ Fund reflects a strategic initiative to use privately capitalized autos to boost our assets under administration and produce charges-for-support with out the need to have to increase equity cash at perhaps dilutive selling prices,” mentioned Paul Pittman, FPI’s Chairman and CEO. “As the OZ Fund grows with new qualities, our house administration cash flow will improve as effectively as the overall scale of the farmland that we deal with. The transaction creates value for FPI shareholders by marketing FPI land at a quality to reserve worth while allowing for us to retain management of the properties in trade for management expenses.”
The property sale agreement presents for, amid other things, FPI’s opportunity sale of about $47 million and 6,500 acres throughout 12 farms. The 1st 6 farms are predicted to shut by March, but all closings are matter to customary situations, like financing, and other contingencies. The OZ Fund is also concentrating on farmland owned by third get-togethers and found in QOZs for probable acquisition. FPI has committed to fund 10% of the fairness needed to obtain farmland owned by 3rd get-togethers up to a maximum of $20 million in exchange for passions in the OZ Fund. FPI will provide as home supervisor for all farmland property owned by the OZ Fund in exchange for property administration expenses.
The OZ Fund was designed to get, make improvements to, and promote economic advancement of land found in QOZs. QOZs are sure economically distressed communities in the United States exactly where new investments, below certain circumstances, could be suitable for preferential tax remedy. The OZ Fund was founded and is managed by Servant Monetary, a Chicago-primarily based financial investment administration company.
“This is a win-earn,” commented John Heneghan, President of Servant Monetary. “Promised Land Option Zone Fund provides new sources of capital to farmland, will increase financial capability and efficiency for farmers, and encourages work throughout agricultural communities. We consider the OZ Fund provides economic, environmental, and social impacts that are compelling for traders. We are happy to collaborate with Farmland Companions, the farmland industry’s foremost REIT, on our one of a kind and revolutionary opportunity zone car or truck.”
About Farmland Associates Inc.
Farmland Companions Inc. is an internally managed true estate firm that owns and seeks to receive higher-quality North American farmland and helps make loans to farmers secured by farm genuine estate. As of the date of this release, the Firm owns somewhere around 155,000 acres in 16 states, such as Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have somewhere around 26 crop sorts and more than 100 tenants. The Company elected to be taxed as a genuine estate financial commitment trust, or REIT, for U.S. federal cash flow tax uses, commencing with the taxable 12 months ended December 31, 2014. Additional info: www.farmlandpartners.com or (720) 452-3100.
About Servant Money
Servant Economical, Ltd. is a Chicago-dependent expense management firm established in 2003. The agency serves the various expenditure, possibility administration, and finance needs of individuals, significant internet worth clients and household offices. Servant Economic focuses on alternative investments – private equity and hedge resources, ETFs, and socially dependable investments. Added information: www.servantfinancial.com or (630) 264-0127.
This press release features “forward-looking statements” in the this means of the federal securities legislation, together with, without having limitation, statements concerning the transaction, the predicted timeline for closing, the Company’s skill to sell additional attributes to the OZ Fund, the predicted gross proceeds from the gross sales to the OZ Fund, the expected managements costs to be acquired by FPI, and the means of the OZ Fund to receive added farmland houses. Forward-on the lookout statements usually can be identified by the use of forward-hunting terminology these types of as “may perhaps,” “must,” “could,” “would,” “predicts,” “likely,” “proceed,” “expects,” “anticipates,” “long term,” “intends,” “plans,” “thinks,” “estimates” or equivalent expressions or their negatives, as very well as statements in long term tense. Even though the Company thinks that the anticipations reflected in these types of ahead-hunting statements are based mostly upon reasonable assumptions, beliefs and anticipations, these kinds of forward-seeking statements are not predictions of long term functions or ensures of long term performance and our genuine effects could vary materially from individuals established forth in the ahead-wanting statements. Some aspects that could trigger these a difference include the capacity to consummate the transaction described over, fulfillment of certified chance zone restrictions as decided by OZ Fund 3rd-bash advisors, and the general financial ailments. Any forward-wanting info presented herein is created only as of the date of this push launch, and the Organization does not undertake any obligation to update or revise any ahead-wanting information and facts to replicate changes in assumptions, the occurrence of unanticipated situations, or normally.
Resource Farmland Associates Inc.