Launch of the fund APF GROUP CR SICAV a.s.
We would like to inform you that as of 15 January 2024, in cooperation with DELTA investiční společnost a.s., we will start subscription of investment shares of the fund APF GROUP CR SICAV a.s. More information on the fund can be found on this page.
The funds will be used for investments based on the financing of agricultural entrepreneurs, for equity interests in agricultural entrepreneurs and for the purchase of agricultural land within the Czech Republic. The strategy for purchasing agricultural land owned by the Fund will be identical to and mutually supportive of APF VENTURE CAPITAL CR Ltd.
APF VENTURE CAPITAL CR s.r.o. will continue to provide real estate services for clients, real investments in the form of direct ownership of agricultural land (client portfolios) and secured participation in the purchase of agricultural land.
For the sake of transparency, here are examples of APF GROUP's investments in the agricultural sector that will be implemented by the fund and for which the implementation process has already started.
1) Reducing the credit indebtedness of the agricultural company through the direct purchase of agricultural land subject to a mortgage in favour of the financing bank. The purchased land is then leased back to the agricultural company with a long-term notice period (e.g. 10 years).The agricultural company continues to farm the land in question and pays the agreed rent. The income of the Fund in this case is generated on the basis of the rental income and the regular annual revaluation of the market value of the purchased agricultural land.As part of the extension of the cooperation with the agricultural company, the provision of long-term financing for the business is envisaged. In this case, the income of the fund will be extended by the interest received on the financing provided.
2) Capital injection into an operating agricultural company and provision of financing for its business activities (investment, operation). The income of the Fund in this case is the share of the profits of the agricultural company and the interest income from the financing provided.
3) Establishment of an agricultural company (or capital entry) with a tenant farming on agricultural land owned by the Fund. The Fund acquires the business interest, leases the agricultural land owned by the Fund and provides financing for the agricultural company. In this case, the income of the fund is a share of the profits of the agricultural company, the rental income, interest income and the periodic revaluation of the market value of the agricultural land owned by the fund.
We will keep you informed of the specific business cases implemented.
Thank you for your trust and cooperation so far.