£200m sale of land to test brexit effect

Savils

The sale of one of the country’s largest farming operations is to test a “brexit” from the impact on the price of agricultural land.

The 100-year Strutt & Parker (Farms) Ltd is in sale for about £200 million and includes more than 30 000 hectares of East Anglian farmland.

The land prices have been declining since 2015 in a context of uncertainty regarding the continuation of subsidies for farmers.

The government has guaranteed that the agricultural subsidies at the current level of the EU until 2022 election.

Private property Strutt & Parker has received £1,267,000 in grants rural payments agency in 2017.

The entire company generates revenues of approximately £21 million a year.

The price of prime arable land rose to a record high in 2014 to almost £10,000 per acre and is now about 9,000 pounds sterling.

The farmers have also said that the decline in the number of migrant farm workers, increasing costs and reducing farm profitability.

This month, the government has introduced a temporary visa system for a maximum of 2 500 workers for the period immediately following the united KINGDOM to leave the european UNION, in March of the next year.Diversified business

The land, which stretches across Suffolk, Cambridgeshire and Norfolk, also contains commercial and residential, as well as renewable energy projects.

The farm business includes four large farms, contracting and joint-ventures, a sheep of the company through Ministry of Defence land in the county of Norfolk, an agricultural enterprise in Cambridgeshire and Lavenham Fen Farms.

Last year, the company has converted 34 acres of agricultural land into a natural burial site, Old Park Meadows near Chelmsford, which is included in the sale.

The sale is handled by Savills, the estate agents, and Deloitte.

David Jones, corporate finance partner at Deloitte, said: “In our experience, the interest is likely to come from a number of sources, due to the scale and diversity of the asset base, and we anticipate that there will be in the interest of both countries and foreign high-net-worth individuals.

“For the overseas buyer, the current weakness of the pound sterling against the dollar adds to the attraction. We also anticipate the demands of research institutions long-term asset-backed investments.”

Strutt & Parker (Farms) is separated from Strutt & Parker, estate agents, although they were both created by the same two families in the 19th Century.