The Sustainable Farmland Trust PLC, an investor in farmland and agriculture-focused assets predominately in the US, said it plans to launch a £200mln initial public offering and to begin trading on the main market of the London Stock Exchange.
The company's investment manager, Intl Farming Investment Management LLC and its affiliates, have more than US$2.2bn assets under management. The current pipeline, of about US$3.0bn, is expected to expand, the company said.
"We are delighted to be launching the first farmland-focused investment company listed on the London Stock Exchange,” said Andy Crossley, chair of The Sustainable Farmland Trust.
It noted that farmland is historically negatively correlated to equity markets, provides a stable income, and is expected to outperform in an inflationary environment.
“We believe that the company is perfectly positioned for the current inflationary environment, with outstanding risk adjusted economic returns while also providing a sustainable and appropriately managed food source,” said Crossley.
IFC has owned or managed about 420,000 farmland and ranchland acres across more than 18 US states, two Australian states and Chile, cultivating more than 80 crop types.
The investment trust plans to issue 200mln shares at £1.00 each in a placing and subscription offer.
It did not mention the timing of the IPO, but said it expects to publish a prospectus “in due course”.
The company is targeting a net initial yield of 4.5% and a net asset value (NAV) total return of 7-9% per year.