DENVER, Dec. 14, 2016 /PRNewswire/ -- Farmland Partners
Inc. (NYSE: FPI) (the "Company") today announced that it has
entered into a purchase agreement to acquire 8,638 acres of row
crop farms in Illinois for total
consideration of $55.3 million in
cash. The Company intends to fund the transaction with proceeds
from its recent public offering of common stock and new secured
debt to be entered into upon closing of the transaction.
While no lease agreements have been entered into at this time,
the Company intends to negotiate new lease agreements with multiple
tenants. The acquisition is expected to close in the first quarter
of 2017, subject to customary closing conditions.
"These two farms of approximately 3,800 and 4,900 acres
represent a truly unique investment opportunity in the Midwest,"
said Paul Pittman, CEO of the
Company. "We expect significant long term appreciation on these
properties due to their size and the incredibly efficient operating
environment we expect to provide to our tenants."
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real estate
company that owns and seeks to acquire high-quality North American
farmland and makes loans to farmers secured by farm real estate.
The Company owns or has under contract (excluding the properties to
be acquired upon completion of the Company's pending merger with
American Farmland Company) 124,295 acres in Arkansas, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North
Carolina, South Carolina,
Texas and Virginia. The Company elected to be taxed as a
real estate investment trust, or REIT, for U.S. federal income tax
purposes, commencing with the taxable year ended December 31, 2014.
Forward-Looking Statements
This press release includes "forward-looking statements,"
including within the meaning of the federal securities laws,
including statements about the timing of the acquisition and the
sources of funds to be used in the acquisition. Forward-looking
statements are subject to known and unknown risks and
uncertainties, many of which may be beyond our control. We caution
you that the forward-looking information presented in this press
release is not a guarantee of future events, and that actual events
may differ materially from those made in or suggested by the
forward-looking information contained in this press release. In
addition, forward-looking statements generally can be identified by
the use of forward-looking terminology such as "may," "plan,"
"seek," "comfortable with," "will," "expect," "intend," "estimate,"
"anticipate," "believe" or "continue" or the negative thereof or
variations thereon or similar terminology. Any forward-looking
information presented herein is made only as of the date of this
press release, and we do not undertake any obligation to update or
revise any forward-looking information to reflect changes in
assumptions, the occurrence of unanticipated events, or
otherwise.
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SOURCE Farmland Partners Inc.