DENVER, Sept. 22, 2017 /PRNewswire/ -- Farmland
Partners Inc. (NYSE: FPI) ("FPI") announced today that it has
entered into agreements to acquire from Olam International Limited
("Olam") approximately 5,100 acres of permanent crop farmland in
California for a purchase price of
$110 million.
The properties are located in California's Central Valley and are dedicated
to the production of almonds, pistachios and walnuts. At closing of
the acquisition, FPI will enter into a 25-year triple-net lease
agreement with Olam on a revenue share basis. During the term of
the agreement, Olam will operate and maintain the properties and
improvements. Closing is subject to customary conditions.
Olam is a leading global agribusiness company with operations in
70 countries and nearly 70,000 employees. FPI is the largest
publicly-traded farmland real estate investment trust in the U.S.
FPI's portfolio is broadly diversified across crops and regions,
spanning more than 154,000 acres.
Commenting on the transaction, Paul
Pittman, FPI Chairman and CEO, said, "We are excited to work
with Olam and look forward to building upon this relationship. We
have a high degree of respect for Olam's team of exceptionally
talented operators. Further, we look forward to bringing these
properties into our portfolio. They are unique, high-quality farms
in the heart of California's tree
nut industry. The properties and associated agreements will bring
higher cap rate permanent crop production into our portfolio
furthering our goal of delivering a well-balanced portfolio of U.S.
farmland to our stockholders. On an unlevered NOI basis, we expect
these leases in 2018 to be accretive to our portfolio relative to
the cost of our recently issued preferred security."
Olam's Managing Director and CEO of Edible Nuts, Ashok Krishen noted: "As part of our Edible Nuts
strategy, we intend to further invest in growing almonds,
pistachios and walnuts in California. We have built a sizable portfolio
of prime orchards and have adopted sustainable and industry leading
agricultural practices in managing these orchards. We had been
looking for the right partner who sees the long-term value of
farming, while we are looking for an asset light model to
participate in the production economics of the tree crops.
Farmland Partners, whose success is based on strong partnerships
with farmers, is therefore a strategic fit for our business
model."
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real
estate investment trust that owns and seeks to acquire high-quality
North American farmland and makes loans to farmers secured by farm
real estate. The Company's portfolio is comprised of more than 300
farms covering nearly 154,000 acres across seventeen states. 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.
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SOURCE Farmland Partners Inc.