About us

About Us:

Agrární půdní fond s.r.o. (APF), or the Agrarian Land Fund, was established as a start-up in May 2020 by combining the forces of an investor, a real estate broker and traders of agricultural land in the Czech Republic. In 2021, we became fully independent from a partnered real estate company. APF is a real estate mediator in accordance with the law, the Real Estate Mediation Act, with professional liability insurance in the amount of CZK 20 million. 

Where We Came From:

In 2015, we started off as real estate brokers specialising in agricultural land working under the Czech Republic’s largest real estate company. Through APF’s current owner, we made our first investment into agricultural land in 2016. This investment was CZK 550,000 with a gross return on investment of 40%. Up to the establishment of APF, the owner traded only as a natural person. After the first transaction, the owner gradually gained personal capital equal to roughly CZK 11 million, which was then invested into APF.

Our Skills and Why Clients Seek Us Out:

Thanks to our experience, knowledge and expertise, we can select agricultural land suitable for potential investment, determine its current market price, future returns and, by extension, its future market value and, ultimately, sell the land with these facts in mind. The average gross return is around 20% per annum. And thanks to our skill in the field affirmed by many previous transactions, we can afford to guarantee future returns through a preliminary contract of sale 

Our Past Achievements:

The company’s current Portfolio Manager won the award for the best real estate broker in the Czech Republic at the largest real estate company on the domestic market for both the years 2019 and 2020. So far, he has conducted 1,164 client transactions with a total value exceeding CZK 687 million. We gained most of our private clients through working with a real estate company, who started working with us based on client recommendations. Our Portfolio Manager has received upward of 900 recommendations. Our “numerous” previous transactions are attested by the following figures:

Our Achievements in 2021:

In 2021, we carried out 372 client transactions with a total value of CZK 183 million. None of these transactions resulted in a loss nor had a gross return below 10%. 

At the same time, we carried out 38 of our own transactions (APF + owner) with a total value of CZK 14.5 million. The average gross return on these transactions was 30%.

Our operating profit was CZK 5.2 million, and the total value of assets was CZK 27.5 million. Most of the assets were financed from our own resources (capital stock, current year profit, commitments to the partner) in the total amount of CZK 16.4 million.

We currently manage client portfolios with a total value of over CZK 200 million and with an average investment duration of 24 months. Our clients are individuals, small and medium-sized companies and multinational companies.

 

How We Operate:

We work primarily with real demand in individual locations at predetermined land parameters (type of land, acreage, climate zone, location, placement within the cadastral area, agricultural lease, time before sale).

We focus on the main areas of agricultural production. We choose plots of land which, based on our experience, knowledge and completed transactions, are undervalued in terms of their current market price or their parameters. We carefully assess the agricultural lease conditions. We focus on stable portfolio returns (starting at 10% per annum) with an emphasis on market rent.

We then put the selected plots back on the market through our partnered real estate agency.  We do not take into account any potential increase in agricultural land prices, nor do we try to predict it.  We respond to developments in market demand or specific requirements of interested parties and, of course, account for changes in the Czech Republic’s macroeconomic and legislative conditions.

Last but not least, we have knowledge of agricultural issues acquired through university education.

Thanks to our close cooperation with a real estate agency, we have access to an extensive database of those interested in agricultural land, created by our own active trading. We employ all of the available marketing means of the partnered real estate agency to effectively offer our land.

What We Strive For:

To give small and medium-sized non-agricultural investors and savers the opportunity to invest in agricultural land as a finite factor of production which has dramatically increased in importance over the last few years. With your long-term investment, you will support an acceptable distribution of land ownership in the Czech Republic and acquire a conservative alternative to investing in banking products which also has a more interesting appreciation. You practically do not have to worry about the investment, as we manage the land automatically within the portfolio. For most of our products, you remain as the owner for the entirety of the duration of your investment to ensure that you have your investment under control.

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