UK Agricultural Land Fund purchases fourth farm and returns 6.5% in 2011

Brooks Macdonald Funds is pleased to announce that its Channel Islands-listed UK Agricultural Land Fund has purchased its fourth farm for just over £2m, a discount of 7% to the market value.

The farm, which is located in Lincolnshire, is close to one of the Fund’s existing holdings and offers approximately 300 acres of highly productive grade 2 and grade 3 arable land.

The Fund has seen increased interest from investors looking to invest in assets which offer long-term security. The performance of land has been less volatile than other investments, such as equities and commercial property, in recent years. The Fund’s performance over the past twelve months has seen 6.5% growth.

Chesterton Humberts predicts average farmland prices during 2012 will increase by a further 5%. According to Savills, farmland is still regarded as a safe haven for investment compared to other asset classes. Savills predicts a 36% growth increase in the average value of farmland in the five years following 2012. This forecast growth follows a substantial rise in average farmland values over the past five years (138%) which was significantly greater than that recorded for either residential or commercial property or equities.

Martin Robinson, Chairman of Brooks Macdonald Funds and Director of the Fund commented:

“The acquisition is a welcome addition to the Fund’s portfolio. As well as being a good strategic fit with the Fund’s existing holdings, the farm has been rented to an existing tenant of the Fund nearby, on terms which will enhance the Fund’s gross yield, and the valuation will be reflected in the Fund’s NAV in January. We anticipate making further acquisitions in 2012 as interest in the Fund continues to grow.”

For further information, please contact:

Simon Wombwell, BMF CEO
T: 020 7499 6424
    
Martin Robinson, BMF Chairman
T: 0161 870 3860

Julie Serrage, BMF Marketing Manager
T: 0161 870 3860

This document has been approved for issue by Brooks Macdonald Funds Limited, which is authorised and regulated by the Financial Services Authority.