Disposition; maximum return for investors
Precondition: a stable, substantial, mid/long-term return on the investment with very low risk
• Well performing investments can be transferred to a subsequent fund (something that regularly occurs because farmland concerns a mid/long term investment)
Minimum duration development before exit: 5 years
• Dependant on market circumstances and performances unless investors desire otherwise.
Attractive disposition scenarios or options are monitored during the term of the investment.
Alternative disposition routes, when the investment has been developed and is highly profitable
• Sale of the entire portfolio (according to general experience in Central Europe this is the most likely route)
• Sale of loose farm units or clusters from the portfolio (if the total of the proceeds exceeds a once-only total sale)
• Flotation/IPO (subject to timing and market conditions)
It can generally be stated that there will be a growing interest for a broader acceptance of the agricultural sector among institutional investors during the term of farmland investments carried out by Cibus Farmland Club.