Products

STABLE INVESTMENT EVEN IN UNCERTAIN TIMES

Agriculture is an integral part of the primary sector of the national economy of the Czech Republic. Its importance is not only in the production of food and other agricultural products, but it is also of great importance for the preservation of the cultural landscape and within the ecological approach to the environment.

In the Czech Republic, all crops characteristic for the geographical and climatic location of the country are grown. These are all the major types of cereals (wheat, barley, rye, oats and maize), sugar beet for sugar production, potatoes, oilseeds (rapeseed), flax, hops, fruits, vegetables and vines. Cattle (for milk and meat), pigs, and poultry are mainly raised in animal production in the Czech Republic.

The total area of ​​the agricultural land fund of the Czech Republic is 4,269 thousand. ha (54.1% of the total area of ​​the state). Its largest part is arable land, although its area is decreasing. On the other hand, the area of ​​permanent grassland is increasing.

80% of agricultural land is leased. 75% of landowners are individuals.

Basic Properties of APF Products

  • Transparency – the client is always informed what land they are buying and under what conditions.
  • Simplicity – we will prepare all contractual documentation and ensure the transaction is successfully carried out.
  • Security – the client is the sole owner of the land at all times – a real investment.
  • Low level of risk – agricultural land has a stable development of market prices and is not subject to market price fluctuations like other assets (e.g., stocks, bonds, share certificates, commodities, cryptocurrencies, residential real estate or commercial real estate).
  • Experience – we are experienced traders and investors with knowledge of the agricultural land market.
  • Recommendations – we can provide proof of a large number of recommendations from clients with whom we are in active business.
  • Relative effortlessness – the client is required (if the law stipulates so) to pay real estate tax once a year and, following the sale of land (close-out), to pay income tax for the tax period in which they received income.
  • The possibility to pay the purchase price when purchasing agricultural land with the following cryptocurrencies: BTC, ETH, BCH, USDT, XLM, UNI, LINK and APFC.

Guide to Investing into Agricultural Land

  1. The client chooses the type of product based on their preferred duration of investment and method of returns payment. At the same time, the client determines the total amount they intend to invest.
  2. Agrární půdní fond s.r.o. (hereinafter “APF”), or the Agrarian Land Fund, will prepare a proposal for a portfolio of agricultural land based on the selected product type and send this proposal to the client for approval.
  3. Following the client’s approval of the portfolio, APF together with the real estate agency with put together contractual documentation for the purchase of the land (reservation, contract of sale, escrow). With APF, the client signs the General Terms and Conditions for the selected type of product.
  4. The administrative fee for portfolio management is paid by the client on the basis of a signed reservation contract to the current account of the partnered real estate agency and invoices issued by APF. 
  5. The purchase price for individual plots is settled through an escrow account (bank escrow) on the basis of a concluded contract of sale.
  6. After ownership of the land is transferred to the client, APF and the client sign a preliminary contract of sale. The future sale price includes the guaranteed profit. APF, in cooperation with the client, will ensure that an amendment (or new contract) is made to the existing agricultural lease agreement for the land in question.
  7. Prior to the end of the duration of investment, in accordance with the General Terms and Conditions, APF will ensure the sale of the land through the partnered real estate agency.
  8. Settlement for the sale of the land is conducted in the same way as its purchase. The sale price is paid to the client’s current account in accordance with the concluded contract of sale. In the event that APF fails to secure the sale of the land through the market offer of the partnered real estate agency, APF will purchase the land on the basis of the concluded preliminary contract of sale.

Statement of Agrární půdní fond s.r.o.

The company does not accept financial settlement from clients in the form of financial or material investment into the company. For clients who do not wish to directly invest into agricultural land, we offer the possibility of buying a bond or making a loan agreement. All transactions are transparent and are performed on the basis of concluded contractual documents. APF provides clients with a guarantee of sale at a fixed return on the basis of a concluded preliminary contract of sale. This guarantee is provided from the company’s own resources.

Agrární půdní fond s.r.o. is primarily an investor that invests directly into agricultural land. It performs business activities from its own resources and in cooperation with a financing banking subject. These financial resources cover possible repurchases of land. The main income of the company are the profits made from the sales of agricultural land. A secondary revenue source are the administrative fees for the management of client portfolios, which the company shares with the partnered real estate agency.

Types of APF products

Comparison of individual APF products

Investment agricultural land IAL

A long-term investment into agricultural land LTIAL

Individual portfolio IP

Participation in the purchase of agricultural land

Amount of investment/participation

Min. 300.000 Kč

Min. 500.000 Kč

Min. 5.000.000 Kč

Min. 20.000 Kč

Duration

1-5 years

5 years

1-5 years

1-5 years

Expected return

16 % p.a.+

18 % p.a.+

20 % p.a.+

12 % p.a. – 20 % p.a.

Guaranteed return

16 % p.a.

18 % p.a.

18 % p.a.

12 % p.a. – 20 % p.a.

Land ownership

client

client

client

APF

Administrative reward

6,5 %

7.5% of investment + 20% of return above 18%

6.5% of investment + 20% of return above 20%

0 %

Diversification

Partial according to the amount of the investment

Min. 2 cadastral territory

Min. 5 cadastral territory

Provided by APF

Continuous payment of revenue

Yes, annually

Yes, quarterly

Yes, individually

Yes, monthly/quarterly

Advantages

Investments from low amounts with optional investment duration

The most requested product with quarterly income payout

Greatest diversification and yield potential

Passive fixed income investments for smaller savers

Investment agricultural land

WE WILL PROPOSE A PORTFOLIO ON THE BASES OF THE AGREED CRITERIA

Basic Product Parameters:

  • Real investment with a guaranteed annual return of 16%
  • The duration of the investment is 12 to 60 months
  • The minimum investment amount is CZK 300,000 (applies to new clients)
  • The administrative fee is 6.5% of the value of the investment 
  • The client is the owner of the land for the entire duration of the investment
  • The guaranteed return is agreed on the basis of a preliminary contract of sale (PCoS). Payment of the returns is governed by the preliminary contract of sale and is stipulated as follows:
    • in the case of a duration of investment of 12 months, payment on the date of the settlement of the sale price of the land
    • in the case of duration of investment of 24 or more months, payment of the return of 16% each 12 months from the date of acquiring the land (entry in the Real Estate Cadastre)
    • final payment on the date of settlement of the sale price of the land (sale price without paid returns)
  • In the case of adequate market conditions, it is possible to sell land with a higher return than the guaranteed return of 16%

The implementation of the transaction is governed by the relevant product’s valid General Terms and Conditions of Agrární půdní fond s.r.o.

Long-term Investment into Agricultural Land

WE WILL PROPOSE A PORTFOLIO ON THE BASES OF THE AGREED CRITERIA

Basic Product Parameters:

  • Real investment with a guaranteed annual return of 18% with continuous quarterly returns payment
  • Long-term investment with a duration of 60 months
  • The minimum value of the investment is CZK 500,000
  • The client is the owner of the land for the entire duration of the investment
  • The administrative fee is 7.5% of the value of the investment
  • Combination of individual return with a guaranteed annual return of 18%
  • Additional individual remuneration to APF when reaching an annual return higher than 18%
  • The guaranteed annual return is agreed on the basis of a signed preliminary contract of sale (PCoS)
  • Payment of the returns is governed by the preliminary contract of sale and is stipulated as follows:
    • first payment after 3 months from the date of acquisition of land in the amount of 4,5% of annual guaranteed return, paid quarterly for the duration of the investment
    • last payment on the date of settlement of sale price (sale price without paid returns) but no later than 60 months
  • Diversified portfolio with at least 2 sets of land (at least 2 different cadastral areas)

The implementation of the transaction is governed by the relevant product’s valid General Terms and Conditions of Agrární půdní fond s.r.o.

Individual portfolio

WE WILL PROPOSE A PORTFOLIO BASED ON INDIVIDUAL CRITERIA

Basic Product Parameters:

  • Real investment with an individual annual return and continuous pay out
  • The minimum investment amount is CZK 5,000,000
  • The duration of the investment is 12 to 60 months
  • The client is the owner of the land for the entire duration of the investment
  • The administrative fee is 6.5% of the value of the investment
  • Combination of individual return with a guaranteed minimal annual return of 18% Additional individual remuneration to APF when reaching an annual return higher than 20%
  • The guaranteed return is agreed on the basis of a concluded preliminary contract of sale (PCoS)
  • Payment of the guaranteed returns is governed by the preliminary contract of sale and is stipulated as follows:
    • in the case of a duration of investment of 12 months, payment on the date of the settlement of the sale price of the land
    • in the case of duration of investment of 24 or more months, payment of the return of 20% of the total sale value of the land each 12 months from the date of acquiring the land (entry in the Real Estate Cadastre)
    • last payment on the date of settlement of sale price (sale price without paid returns)
    • individually following agreement with the client
  • Diversified portfolio of at least 5 sets of agricultural land (at least 5 different cadastral areas). 

The implementation of the transaction is governed by the relevant product’s valid General Terms and Conditions of Agrární půdní fond s.r.o.

Participation in the purchase of agricultural land

Participation in the purchase of agricultural land

Basic Product Parameters:

  • Funds loaned by clients (lenders) are collected up to the required amount and subsequently used to purchase a set of agricultural land into the ownership Agrární půdní fond s.r.o. (minimum value of the purchased set is CZK 200,000)
  • The minimum amount for the Savings Loan is CZK 20,000
  • The minimum duration of the loan is 12 months from the signing of the loan agreement The maximum duration of the loan is 60 months from the signing of the loan agreement Fixed annual interest rate of loaned funds starting at 12% depending on the loan amount and loan duration
  • Quarterly interest payment (first payment after 3 months from the conclusion of the loan agreement) to the current account of the client (lender)
  • A loan with a duration of 24 months to 60 months and an amount exceeding CZK 500,000 can be secured by a lien on the purchased set of agricultural land in favour of the client (lender)
  • Basic interest of the Savings Loan by the loan amount: 
    • minimum amount CZK 20,000 to CZK 49,999 – 12% p.a. (per annum)
    • CZK 50,000–CZK 99,999 – 13% p.a.
    • CZK 100,000–CZK 199,999 – 14% p.a.
    • CZK 200,000–CZK 499,999 – 15% p.a.
    • CZK 500,000 and more – 16% p.a.
  • Additional interest on the Savings Loan by the duration of the loan:
    • minimum duration of 12 months – basic interest according to the loan amount for each additional
    • started calendar year + 1% p.a. (i.e. second, third,… year) (e.g. loan in the amount of CZK 20,000 with a duration of 36 months = interest rate 14% p.a.)

For the implementation of the transaction, a loan agreement is concluded, secured by a promissory note with a statement. In explicitly mentioned cases, following the acquisition of land, a contract is made regarding the establishment of a lien on the land in question in favour of the lender.

Documents to download

General Terms and Conditions

Documents to download

PRELIMINARY CONTRACT OF SALE

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