Agcapita Update: $10 Billion Searching for Home in US Farmland?

Calgary, Canada, October 14, 2014 --(PR.com)-- Stephen Johnston, co-founder of Agcapita, commented, "The large amount of capital looking in to the farmland asset class from the sidelines does not surprise us. Farmland is a highly attractive asset class with high Sharpe ratios but at the same time a difficult asset class for most investors to access. There are few managers with full fund life-cycle experience from inception to exit and without an experienced field team to generate deal flow capital can be highly time consuming to deploy. Agcapita is currently on its fifth fund and has already achieved a highly successful exit from its first fund. Farmland continues to gain attention as a useful portfolio addition for pensions and family offices - investors with long-term horizons and who seek stable returns and unique portfolio diversifiers. CPP's investment represents one of the first forays by a large Canadian institutional investor into domestic farmland investments and bodes well for the future of the Canadian market. Agcapita believes that prices of Canada farmland, in particular Saskatchewan farmland, are discounted to world averages for a ton of productive capacity. Part of our investment premise is that this gap will close and with the attention that Canadian farmland is receiving from investors it can obviously happen quite quickly. It is this 'margin of safety' return driver that attracted us to Canada and Saskatchewan in the first place.”

According to Karim Kadry, Agcapita’s Investment Manager, “Agcapita believes that farmland will continue to show great appeal to conservative investors concerned with inflation and the volatility of their existing public equity investments. Canadian farmland has similar inflation hedging qualities to gold but with an ongoing cash yield that gold lacks. We are now seeing large institutional investors recognize these qualities with CPPIB acquiring 120,000 acres of Saskatchewan farmland in a single transaction worth in excess of $120 million.”

Agcapita’s series of farmland funds continue to show great appeal to conservative investors concerned with inflation and the volatility of their existing public equity investments. Farmland has similar inflation hedging qualities to gold but with an ongoing cash yield that gold lacks. Farmland returns exhibit low volatility and this combined with the high absolute returns from farmland equate to a favorable Sharpe ratio. Agcapita’s funds directly hold diversified portfolios of farmland in western Canada, and in particular in the highly price competitive province of Saskatchewan. Investors are provided with the comfort of a direct investment in farmland combined with a model of front-end loaded cash rents. Agcapita is part of a family of alternative investment funds with a focus on generating commodity-linked returns. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term. Agcapita is one of Canada's most experienced farmland fund managers, launching its first fund in Q1 2008.

Agcapita Farmland Fund V has launched in June 2014 and is the only farmland investment fund eligible for registered plans (RRSP, TFSA, RESP etc). Fund V is open to investors in BC, Alberta, Saskatchewan, Manitoba, Ontario and accredited investors in Quebec. If you are interested in finding out more about the Fund V offering please feel free to email us on enquiries@farmlandinvestmentpartnership.com

This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words "anticipate," "expect," "may," "should" "estimate," "project," "outlook," "forecast" or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by Agcapita, if any, reflect Agcapita's beliefs and assumptions based on information available at the time the statements were made (including, without limitation, that (i) the demand for agricultural commodities will continue to grow at a pace that is unlikely to be matched by growth in agricultural productivity, and (ii) investment demand for tangible assets such as agricultural commodities and farmland will continue to increase for the foreseeable future). Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Factors which could cause actual results or events to differ materially from current expectations include, among other things: risks associated with the ownership and operation of farmland, including fluctuations in interest rates, rental rates and vacancy rates; general economic conditions; local real estate markets; supply and demand for farmland; competition for available farmland; weather; crop diseases; the price of grain and other agricultural commodities; changes in legislation and the regulatory environment; and international trade and global political conditions. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. Agcapita's undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.