Investments
Agro Finance REIT pursues active investment policy and according its Articles of Association may invest in the following types of landed properties, located on the territory of the Republic of Bulgaria:
- landed properties in agricultural territories – arable lands (fields, orchard and vegetable gardens, vineyards, meadows, etc.) and uncultivated lands;
- landed properties in forest territories – forests and woodlands;
- landed properties in urbanized territories (towns and villages and settlement formations), intended for residential, public-servicing, production, storage, resort, villa, sports and entertainment functions.
The company may also acquire newly constructed and completed buildings – residential, industrial, business/farm, as well as parts of such buildings.
Investment Criteria for Real Estate Selection
Agro Finance REIT examines in detail the real estates which it owns or intends to acquire, considering the state and forecasts for the development of the real estate market in the country. The company forms concrete strategy for the acquisition, management and disposal of real estates, being guided by the general requirements and limitations laid down in the Special Purpose Vehicles Act (SPVA) and complying with the following investment criteria:
- The cost of acquisition is a determining criterion. It has to be within the predominant for a given category of lands market prices or lower. The cost of acquisition is a determining criterion. . As of June 30th, 2022 the average acquisition price (all costs included) of the acquired by Agro Finance AD agricultural land was BGN 3178,2 (EUR 1 624.99) per hectare.
- The geographical location is of significance with a view to selection of plots from appropriate regions in which the soil has qualities for agricultural cultivation.
- The arability of the agricultural land – plots that may be aggregated are with priority. Plots with greater area offer possibilities for more efficient land cultivation and are preferred by the tenants. Due to it Agro Finance REIT seeks to include in its land portfolio delevelled plots with an area over 1 hectare, with irrigation, road access and availability of additional limitations for use of the property – power line, water-main, gas-main and water-supply zone.
