Calgary, Canada, January 17, 2012 --(PR.com
)-- Agcapita Farmland Fund is pleased to announce it has signed a purchase agreement for 2,480 acres in the RM of Miry Creek Saskatchewan as part of its fall 2011 acquisition program.
Saskatchewan farmland values increased an average of 11.6% during the first half of 2011, the highest rate of appreciation across Canada. Saskatchewan farmland returns are tracking other farmland markets and robust agricultural commodity prices. According to Farmland Credit Canada, values increased by an average of 1.9% per month between January 1 and June 30, 2011. Farmland values in Saskatchewan have been rising since 2002. In addition, the appreciation in Saskatchewan has been markedly more rapid than its neighbors Alberta and Manitoba reflecting discounted land prices that are catching up to global and national averages.
Agcapita Farmland Fund III is currently raising $20 million via a RRSP eligible offering with a minimum investment of $5,000. Agcapita Farmland Fund III is open to investors in BC, Alberta, Saskatchewan, Manitoba and Ontario. Investors outside of Ontario do not have to be accredited. Agcapita Farmland Fund is part of a family of funds with approximately $100 million in assets under management and is the only RRSP eligible farmland fund in Canada.
Agcapita’s series of Farmland Fund’s continue to show great appeal to conservative investors. Agcapita believes this stems from some highly unique and increasingly sought after characteristics - low volatility, low correlations to traditional asset classes, high risk adjusted returns, strong linkage to emerging market growth with limited political risk and if structured correctly minimal counter-party risk. Stephen Johnston, CIO of Agcapita Partners said, "The recent bankruptcy of MF Global has shown that investors cannot afford to be complacent about counterparties. It is increasingly apparent that many financial intermediaries only appear to be well capitalized because risks, where apparent, are thought to be hedged. Via hedge transactions, intermediaries argue that net exposure, rather than gross, is the key measure for investors to consider. This is not the case and where is a concentration of risk in critical counter-parties (e.g. AIG), in a world of high positive correlations across markets and asset classes, hedges can fail leaving catastrophic gross rather than net exposure and therefore bankrupt counter-parties behind. It is because we believe that counter-party risk remains opaque and non-trivial that direct farmland investments make sense to us - an unlevered portfolio of farmland has no counter-party to fail."
This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words "anticipate," "expect," "may," "should," "estimate," "project," "outlook," "forecast" or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by Agcapita, if any, reflect Agcapita's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. Agcapita's undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.