Bidwells says the deal underpins the recent trend from investors, across the world, to acquire agricultural land.
And, according to the second edition of the Bidwells Agri-Investment Index (BAII) the latest results confirm that UK agricultural property continues to out-perform all other mainstream investment asset classes. Rural assets let to tenants under a range of tenancy agreements delivered total returns of 18.5% in 2013 according to BAII. This matches the exceptional 18.5% rebound return recorded in the stock market. Rural returns last year significantly out-paced commercial property, at 10.7% and residential property, at 14.7%, as noted by IPD.
But, says Ian Monks of Bidwells, one of the team who advised The Wellcome Trust: "Investing in land requires a long-term view and this fact is reflected in many of the UK's rural portfolios, like the Co-operative's farm business, that have been established and developed over generations and still perform today.
"Increasingly investors are looking to take a strategic, long term view and these include pension funds, traditional institutions, charities as well as private individuals and family offices.
"The Agricultural Industry must go forward with adequate funding but this scale of investment is generally unachievable in a single deal and whilst there are generally more large scale deals in parts of the world like Australia, the Wellcome Trust's acquisition of this farming business which covers 15,997 hectares (39,533 acres) is both rare and a sign of investor confidence.
"The Co-operative Group's farm business (Farmcare Trading Ltd) was an ideal fit for The Wellcome Trust. They are investors with a long-term time horizon and one that recognises the importance of responsible stewardship to generate returns over such a timescale and will be investing in the Farmcare business as well as continuing with the education initiative started by the Co-operative currently called ‘Farm to Fork'."
Adds Jonathan Armitage, Head of Agri-Business at Bidwells, "This farming business is the largest in the UK with a wide geographical spread and very diverse business lines. The scale and range of production from soft fruit and apples to potatoes, cereals and oilseeds presents unique opportunities to create added value across the supply chain. The Wellcome Trust has demonstrated a commitment to exploring and developing these opportunities to drive profitability and build a truly outstanding farming business."
Continues Ian Monks, "Investors, such as The Wellcome Trust, understand that whilst farmland prices may fluctuate in the short term, land will continue to attract a premium in the long term as the world population increases and there are increasing demands on land and natural resources for both food and energy.
"We were delighted to have advised The Wellcome Trust on this exciting acquisition and continue to advise other, like minded, investor groups."
Read the Wellcome Trust's announcement of their acquisition of the Co-operative Farm Business
About Bidwells
Established 175 years ago, today Bidwells is one of the UK's leading property consultancies. We employ almost 500 people in 13 offices across England and Scotland and provide a full range of services across the Commercial, Residential and Rural sectors.
Bidwells Agri-investment team advises investors on how to invest and how to enhance returns both nationally and internationally combining its expertise in agriculture, transactions, property management and investment which has been developed as part of its history.
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For press information please contact:
Bridget Johnson 01223 559393 bridget.johnson@bidwells.co.uk
Julie Bushell 01223 559331 julie.bushell@bidwells.co.uk
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