Agriculture, Investments, Lithuania, Markets and Companies

At the end of March 2014, 17 companies, which are currently owned by INVL Baltic Farmland, managed about 3,000 hectares of land. More than 99% of managed land is being cultivated by Lithuanian farmers and agricultural companies. The total value of the managed land was 36.972 million litas (10.7 million euros). Consolidated shareholders' equity amounted to 34.313 million litas (9.94 million euros).

"Investment in agricultural land has a low correlation with equity and bond markets, and is suitable for people who seek deposit interest rates exceeding income from the lease of land and potential earnings from the change in value," – Sigita Bizuliene, INVL Baltic Farmland group companies manager, said.

According to her, the land in Lithuania remains one of the most undervalued in the European Union, but an increase of its price may slow down, as new restrictions on the acquisition of land in Lithuania have been applied from May 2014. Under these restrictions, it is prohibited for related parties to acquire more than 500 hectares of land. In addition, not only the purchase of land has been limited, but an acquisition of agricultural land managing companies’ shares too. According to Sigita Bizuliene, in Latvia and Estonia such restrictions do not apply.

INVL Baltic Farmland, split-off from Invalda LT, is going to seek closed-end investment company license and in its activities become similar to investment fund. Later, company plans to evaluate the investment environment and attract additional capital.

INVL Baltic Farmland has a total of 3.294.209 shares issued and the book value of the share is 10.42 litas (3.02 euros).