DENVER, Jan. 21, 2021 /PRNewswire/ — Farmland Companions Inc. (NYSE: FPI) (the “Company” or “FPI”) declared now that its beforehand disclosed negotiations relating to an option zone fund have resulted in the signing of a house sale and long-phrase management agreements with Promised Land Opportunity Zone Farms I, LLC (“OZ Fund”), a non-public investment decision fund targeted on getting and improving farmland in competent chance zones in the United States (“QOZs”), as specified underneath U.S. tax provisions enacted in 2017. FPI will serve in a residence administration potential for the OZ Fund and will have the capability to purchase equity interests in the OZ Fund. The Corporation will also have a ideal of initially give to order attributes owned by the OZ Fund.
“The partnership with the OZ Fund displays a strategic initiative to use privately capitalized vehicles to boost our property under administration and generate charges-for-company with no the need to have to elevate equity capital at perhaps dilutive rates,” mentioned Paul Pittman, FPI’s Chairman and CEO. “As the OZ Fund grows with new houses, our residence administration earnings will enhance as perfectly as the over-all scale of the farmland that we take care of. The transaction creates value for FPI shareholders by providing FPI land at a quality to reserve price whilst permitting us to retain administration of the houses in trade for administration costs.”
The house sale agreement provides for, between other issues, FPI’s possible sale of close to $47 million and 6,500 acres across 12 farms. The very first 6 farms are anticipated to shut by March, but all closings are issue to customary problems, such as financing, and other contingencies. The OZ Fund is also focusing on farmland owned by third functions and located in QOZs for potential acquisition. FPI has committed to fund 10% of the fairness demanded to receive farmland owned by 3rd parties up to a optimum of $20 million in trade for pursuits in the OZ Fund. FPI will serve as home supervisor for all farmland property owned by the OZ Fund in trade for house administration service fees.
The OZ Fund was designed to obtain, make improvements to, and promote financial development of land found in QOZs. QOZs are sure economically distressed communities in the United States in which new investments, under certain problems, could be suitable for preferential tax cure. The OZ Fund was started and is managed by Servant Financial, a Chicago-based financial commitment management agency.
“This is a acquire-earn,” commented John Heneghan, President of Servant Financial. “Promised Land Option Zone Fund provides new resources of capital to farmland, raises economic potential and productiveness for farmers, and encourages employment throughout agricultural communities. We believe the OZ Fund delivers economic, environmental, and social impacts that are powerful for buyers. We are delighted to collaborate with Farmland Companions, the farmland industry’s foremost REIT, on our exclusive and ground breaking opportunity zone automobile.”
About Farmland Companions Inc.
Farmland Partners Inc. is an internally managed authentic estate enterprise that owns and seeks to obtain high-top quality North American farmland and will make financial loans to farmers secured by farm actual estate. As of the date of this launch, the Company owns close to 155,000 acres in 16 states, together with Alabama, Arkansas, California, Colorado, Florida, Ga, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have somewhere around 26 crop styles and about 100 tenants. The Organization elected to be taxed as a real estate financial commitment trust, or REIT, for U.S. federal money tax purposes, commencing with the taxable 12 months finished December 31, 2014. Additional information: www.farmlandpartners.com or (720) 452-3100.
About Servant Economic
Servant Monetary, Ltd. is a Chicago-dependent investment management organization established in 2003. The organization serves the assorted financial commitment, danger administration, and finance requirements of men and women, large web really worth clients and household offices. Servant Financial focuses on different investments – personal fairness and hedge funds, ETFs, and socially liable investments. Further details: www.servantfinancial.com or (630) 264-0127.
This press release features “ahead-searching statements” in just the indicating of the federal securities legislation, which include, devoid of limitation, statements relating to the transaction, the expected timeline for closing, the Company’s skill to sell supplemental qualities to the OZ Fund, the predicted gross proceeds from the product sales to the OZ Fund, the anticipated managements expenses to be acquired by FPI, and the capacity of the OZ Fund to purchase additional farmland properties. Forward-seeking statements normally can be determined by the use of forward-hunting terminology this kind of as “might,” “should,” “could,” “would,” “predicts,” “potential,” “proceed,” “expects,” “anticipates,” “upcoming,” “intends,” “programs,” “thinks,” “estimates” or identical expressions or their negatives, as well as statements in potential tense. While the Company believes that the anticipations mirrored in such forward-searching statements are based mostly upon reasonable assumptions, beliefs and expectations, these kinds of forward-on the lookout statements are not predictions of future activities or guarantees of long term functionality and our true benefits could differ materially from individuals set forth in the ahead-looking statements. Some things that may result in this sort of a difference incorporate the capacity to consummate the transaction explained earlier mentioned, gratification of certified chance zone regulations as decided by OZ Fund third-party advisors, and the normal economic problems. Any forward-seeking information and facts introduced herein is created only as of the day of this push release, and the Corporation does not undertake any obligation to update or revise any forward-searching information to replicate changes in assumptions, the occurrence of unanticipated occasions, or if not.
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Source Farmland Associates Inc.