How to find the right property assets

June 19, 2017 2:06 pm

When an investor starts their research for any investment within an asset class, one of the first questions they generally ask themselves is “How does this investment fit within my existing portfolio”. Following on from this investors will question themselves around “Is this investment something we have experience in or have the expertise to understand fully”.

In some cases, investment committee’s and individuals realise they don’t have the industry experience and knowledge to make sound investments and therefore do not enter that sector.

The key to finding the right agricultural investment that will best fit your portfolio and deliver the desired investment outcomes is to have a clear understanding of the “purpose’ of the investment from the start. Understanding “why” you are investing in agriculture and your long term aspirations for the investment is crucial to help craft your property criteria.

Having a clear set of criteria may include:

  • What are the financial expectations of the investment?
  • What is our investment horizon? 10-20 years?
  • What would an exit look like?
  • How much capital would we deploy?
  • What is my timeframe to invest?
  • Do we have the appetite for a development opportunity?
  • Is there a preferred agricultural sector we want to participate in?
  • Do we want to be engaged in the value chain? Or be a commodity supplier?
  • Is there a specific location or geography we have in mind?
  • Are we interested in natural assets? Waterways and the environment?
  • Am I interested in being involved in the operational side of the business?

Being clear and honest about the above points enables your team to have real clarity regarding the next steps and assets to target.

In our experience at Impact Ag, we find the above process does take some time to understand and to prioritise those details within one’s criteria. A key milestone is to arrive at a point where by you clearly agree on what you would forgo and what is non-negotiable.

At Impact Ag we work with you to find the right fit. Find out how we can assist you to find the right property.