Member of APF GROUP
LIQUID FINANCIAL RESERVE OF THE APF GROUP: CZK 11.365.936 (30.8.2023)

Products

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 significance for the preservation of the cultural landscape and in the context of an ecological approach to the environment.

All crops characteristic of the country’s geographical and climatic location are grown in the Czech Republic. These include all the main cereals (wheat, barley, rye, oats and maize), sugar beet for sugar production, potatoes, oilseeds (rape), flax, hops, fruit, vegetables and vines. Livestock production in the Czech Republic is mainly cattle (for milk and meat), pigs and poultry.

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 country). Most of it is arable land, although its area is decreasing. On the other hand, the area of permanent grassland is increasing.

80 % of agricultural land is under agricultural usufruct. 75 % of landowners are natural persons.

Why invest to
agricultural land?

Investing in agricultural land with us pays off.
In this way, you will avoid inflation and evaluate your savings.

I WANT TO INVEST

TRANSPARENCY

The client is always informed about which plots of land he is buying and at what price conditions.

SIMPLICITY

We will prepare and secure all contractual documentation for successful implementation of the trade.

SECURITY

The client is the sole owner of the land during whole investment period - real investment.

LOW 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, shares, commodities, cryptocurrencies, residential real estate and commercial real estate).

EXPERIENCE

We are experienced traders and investors with knowledge of the market agricultural land.

NO ARRANGEMENT

The client has the obligation (if it arises by law) to pay once a year immovable property tax and after the sale of land (closing the position) pay income tax for the tax period, in which income he achieved.

Comparison of individual
APF GROUP products

 

LONG-TERM
INVESTMENT (DIZP)

INDIVIDUAL
PORTFOLIO (IP)

Individual portfolio – institutional and private investors (IPI)

Extended long-term investment in agricultural land (PDIZP)

Investment agricultural land - conservative investment (IZPKI)

Amount of investment

LONG-TERM
INVESTMENT (DIZP)

min. 500,000 CZK

INDIVIDUAL
PORTFOLIO (IP)

min. 2,500,000 CZK

Individual portfolio – institutional and private investors (IPI)

min. 10,000,000 CZK

Extended long-term investment in agricultural land (PDIZP)

min. 500,000 CZK

APFCD 9,5/25 bond

min. 500,000 CZK

TIME INVESTMENT

LONG-TERM
INVESTMENT (DIZP)

5 years

INDIVIDUAL
PORTFOLIO (IP)

1-5 years

Individual portfolio – institutional and private investors (IPI)

individual (min. 12 months)

Extended long-term investment in agricultural land (PDIZP)

10 years

APFCD 9,5/25 bond

1-5 years

MINIMUM GUARANTEED YIELD (MZV)

LONG-TERM
INVESTMENT (DIZP)

basic reference rate +
6 % p.a.

INDIVIDUAL
PORTFOLIO (IP)

basic reference rate +
8 % p.a.

Individual portfolio – institutional and private investors (IPI)

basic reference rate + 4 % p.a.

Extended long-term investment in agricultural land (PDIZP)

basic reference rate + 7 % p.a.

APFCD 9,5/25 bond

basic reference rate +
2 % p.a.

LAND OWNERSHIP

LONG-TERM
INVESTMENT (DIZP)

client

INDIVIDUAL
PORTFOLIO (IP)

client

Individual portfolio – institutional and private investors (IPI)

client

Extended long-term investment in agricultural land (PDIZP)

client

APFCD 9,5/25 bond

client

CORRECT REWARD

LONG-TERM
INVESTMENT (DIZP)

8.5% of the investment +
20% of the return above the MZV

INDIVIDUAL
PORTFOLIO (IP)

7.5% of the investment +
20% of the return above MZV

Individual portfolio – institutional and private investors (IPI)

7.5% of the investment + 20% of the return above MZV

Extended long-term investment in agricultural land (PDIZP)

9.5% of the investment + 20% of the return above MZV

APFCD 9,5/25 bond

6% of the investment +
20% of the return above MZV

CONTINUOUS PAYMENT OF PROCEEDS

LONG-TERM
INVESTMENT (DIZP)

yes, quarterly

INDIVIDUAL
PORTFOLIO (IP)

yes, individually

Individual portfolio – institutional and private investors (IPI)

yes, individually

Extended long-term investment in agricultural land (PDIZP)

yes, quarterly

APFCD 9,5/25 bond

yes, annually

ADVANTAGES

LONG-TERM
INVESTMENT (DIZP)

most wanted product
with quarterly income payment

INDIVIDUAL
PORTFOLIO (IP)

individual conditions

Individual portfolio – institutional and private investors (IPI)

individual conditions

Extended long-term investment in agricultural land (PDIZP)

long-term stable investment

APFCD 9,5/25 bond

conservative investment


*basic reference rate = discount rate announced by the ČNB

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 will put together contractual documentation for the purchase of the land (reservation, contract of sale, escrow). The client signs the General Terms and Conditions for the selected type of product with APF.

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.

MORE INFORMATION
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.

7

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.

8

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.

9

The settlement of the sale of land takes place in the same way as the purchase. The purchase price is paid to your account in accordance with the concluded purchase contract.

10

If 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.

APF GROUP products

Long-term Investment into Agricultural Land

Basic Product Parameters:

  • Real investment with a guaranteed annual return and continuous quarterly returns payment
  • The minimum secured yield (MZV) is set as the base reference rate + a risk premium of 6 % p.a.
  • The basic reference rate corresponds to the discount rate announced by the ČNB
  • 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 8.5% of the value of the investment
  • Additional individual remuneration to APF when reaching an annual return higher than MZV
  • 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 3,75% 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)
  • These conditions are valid from 1.6.2023 for new clients of Agrární půdní fond s.r.o.

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

Basic Product Parameters:

  • Real investment with continuous pay out
  • The minimum secured yield (MZV) is set as the base reference rate + a risk premium of 8% p.a.
  • The basic reference rate corresponds to the discount rate announced by the ČNB
  • The minimum investment amount is CZK 2,500,000
  • 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 7.5% of the value of the investment
  • Additional individual remuneration to APF when reaching an annual return higher than MZV
  • 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 17% 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
  • Diversification of the land portfolio according to the strategy chosen by the client
  • These conditions are valid from 1.6.2023 for new clients of Agrární půdní fond s.r.o.

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 – institutional and private investors

The implementation of the trade is governed by the applicable General Terms and Conditions of Agrární půdní fond s.r.o. for the product in question.

  • A real investment with ongoing income payments
  • The minimum secured yield (MZV) is set as the base reference rate + a risk premium of 4% p.a.
  • The basic reference rate corresponds to the discount rate announced by the ČNB
  • The minimum investment amount is CZK 10 000 000
  • Investment duration for an indefinite period with 6 months’ notice, but with a minimum of 12 months
  • For the entire duration of the investment, the client is the owner of the land
  • Management fee is 7.5% of the investment value
  • Additional individual APF remuneration if the annual return exceeds MZV
  • The secured return is negotiated on the basis of a signed contract of sale and purchase (SoSB)
  • The individual setting of the payment of the secured yield is part of the contract of sale and purchase agreement (monthly, quarterly, …)
  • Diversification of the land portfolio according to the strategy chosen by the client
  • These conditions are valid from 1.6.2023

Extended long-term investment in agricultural land

The implementation of the trade is governed by the applicable General Terms and Conditions of Agrární půdní fond s.r.o. for the product in question.

  • A real investment with ongoing quarterly income payments
  • The minimum secured yield (MZV) is set as the base reference rate + a risk premium of 7% p.a.
  • The basic reference rate corresponds to the discount rate announced by the ČNB
  • Long-term investment with a minimum duration of 120 months
  • Minimum investment value is CZK 500 000
  • The client owns the land for the entire duration of the investment
  • Management fee is 9.5% of the investment value
  • Additional individual APF remuneration if the annual return exceeds MZV
  • The secured annual return is negotiated on the basis of a signed contract of sale and purchase (SoSB)
  • At the end of the investment period, the land will be purchased by Agrarian Land Fund Ltd. on the basis of the SoSB.
  • The payment of the proceeds is part of the future purchase agreement and is determined as follows:
    • first payment after 3 months from the date of acquisition of the land at the rate of 4% of the annual secured yield, paid quarterly for the duration of the investment
    • the last payment on the date of settlement of the purchase price from the sale of the land (sale price net of proceeds paid), but no later than 60 months
  • Diversified portfolio of at least 2 sets of land (at least 2 different cadastral areas)
  • These conditions are valid from 1.6.2023

Alternative fund pursuant to Article 15(1) of the AIFMD

Agrární půdní fond s.r.o. has been entered in the list of persons performing asset management comparable to asset management within the meaning of Section 15(1) of the Act on Investment Companies and Investment Funds maintained by the CNB in accordance with Section 596(e) of the ISIF Act. Inclusion on the list does not constitute a business license and does not authorize the public to offer investments and collect money from the public for the purpose of investing it together. Neither the Company nor its activities are subject to the supervision of the CNB, the Company is not subject to any prudential or other rules of operation and the funds entrusted to it for management are not insured by law.

Alternativní fond dle § 15 ZISIF neslouží ke shromažďování majetku od veřejnosti a jeho společného investování. This fund is intended for qualified investors.

A qualified investor is an investor who makes a statement of risk awareness and invests at least:

  • the equivalent of EUR 125,000, or
  • 1 mil. CZK 1 million if the investment in the fund was assessed in connection with the provision of investment services to a specific investor by an OCP or an investment company which assessed that the investment in the fund is suitable for the investor.

Investments in the alternative fund are directed exclusively to agricultural land in the Czech Republic. The Alternative Fund purchases agricultural land for long-term holding and manages it on the basis of lease agreements. The income of the fund is derived from the annual revaluation of the value of the agricultural land held and from rent.

The expected average annual return of the alternative fund is 10-20% p.a. depending on the macroeconomic development of the national economy, the development of fiscal and monetary policy and the development of demand in the agricultural land market.

Contract documentation:

These conditions are valid from 1.6.2023

Purchase of investment land with gradual repayment of the purchase price

  • Purchase of investment land with gradual repayment of the purchase price
  • The minimum purchase price of the land is CZK 200,000
  • The selection of the investment land is carried out by APF from the assets of the APF Group
  • The maximum repayment period is 60 months
  • Minimum required first instalment of 20% of the purchase price of the land, of which 10% is APF’s contractual fee
  • Equal monthly or quarterly instalments with the possibility of an extraordinary top-up of the purchase price
  • Upon payment of the purchase price, the purchase contract is concluded and the land is transferred to the client’s ownership
  • The client is entitled to withdraw from the intention to conclude a purchase contract and thus take possession of the land after payment of the purchase price. In this case, APF will pay the full purchase price back to the client (not the contractual fee). The return of the paid purchase price is conditional upon the client’s full repayment of the purchase price including the contractual fee.
  • In the event of a breach of the repayment schedule by the client, 50% of the advance payments paid will be forfeited as a contractual penalty. APF is no longer entitled to compensation in this case.
  • APF is entitled to unilaterally terminate the contractual relationship in the event of non-payment of two consecutive monthly instalments by the client.
  • After the transfer of ownership of the land in favour of the client, the client may choose to transfer the land to IZP, DIZP or IP products according to the amount of the purchase price of the land. The terms and conditions of each product are governed by APF’s General Terms and Conditions in force at the time of transferring the land to the relevant product.
  • APF is entitled to manage, negotiate leases or mortgage the relevant land in favour of third parties until the purchase price is concluded. Prior to the transfer of title, APF undertakes to ensure that the lien on the relevant land is extinguished.
  • APF is not entitled to sell the land in question to a third party during the term of the contract. In the event of non-compliance with this condition, APF is obliged to return the purchase price paid to the client in full, including the contractual fee.
  • The contractual relationship will be settled by a separate agreement on a future purchase contract concluded between APF and the client.
  • These conditions are valid from 1.6.2023

Real investment on agricultural land owned by the client

  • The client owns agricultural land.
  • The minimum value of agricultural land owned by the client is CZK 300,000.
  • The client is considering selling the land in the future and does not require the purchase price at the current market value immediately after the conclusion of the purchase agreement.
  • The client uses the land owned by him/her for real investment in accordance with the General Terms and Conditions (GTC) of Agrarian Land Fund Ltd (APF) according to the chosen product (DIZP, PDIZP, IP). The client puts his/her own land into the investment without having to purchase new land from his/her own funds.
  • APF determines the current market value of the land owned by the client and the client chooses the appropriate product (DIZP, PDIZP, IP).
  • The minimum duration of the investment is 60 months, which is the minimum time after which the client-owned land can be sold to APF.
  • The maximum investment duration is 120 months. At the end of this period, the land owned by the client will be sold to APF on the basis of a purchase agreement.
  • Once the terms of the investment have been mutually agreed, the client will enter into a SoSB with APF.
  • The agreed current market price will be increased in the SoSB by a secured annual return in accordance with the chosen product (DIZP, PDIZP, IP) as the future purchase price of the land.
  • APF will make a monthly/quarterly advance payment of the future purchase price in accordance with the agreed payment schedule based on the SoSB according to the selected product (DIZP, PDIZP, IP).
  • Upon expiry of the agreed term of the investment, the client concludes a land purchase agreement with APF, which results in the transfer of the ownership right in favour of APF. In the event that the client fails to enter into the land purchase agreement in accordance with the SoSB, the client is obliged to repay the advance payments made towards the future purchase price to APF.
  • The contractual relationship will be governed by the GTC of the chosen product (DIZP, PDIZP, IP) and a separate future purchase agreement between APF and the client.
  • The administration fee for the investment closing is reduced by 3% compared to the standard selected product (DIZP, PDIZP, IP). The payment of the fee is governed by the GTC.
  • Throughout the investment period, APF provides land management (lease agreement, legal defect control, land improvements, etc.). The income from the land lease (lease) is due to the client on the basis of the lease agreement.
  • These conditions are valid from 1.6.2023

Investment agricultural land – conservative investment

The implementation of the trade is governed by the applicable General Terms and Conditions of Agrární půdní fond s.r.o. for the product in question.

  • A real investment with a guaranteed annual return.
  • The minimum guaranteed return is set as the base reference rate + a risk premium of 2% p.a.
  • The basic reference rate corresponds to the discount rate announced by the CNB
  • The duration of the investment is 12 to 60 months
  • The minimum investment amount is CZK 500 000
  • Management fee is 6% of the investment value
  • For the entire duration of the investment, the client is the owner of the land
  • The secured return is negotiated on the basis of a signed contract of sale and purchase (SoSB)
  • The payment of the yield is part of the contract of sale and is determined as follows:
    • in the case of an investment period of 12 months on the date of settlement of the purchase price from the sale of the land
    • in the case of an investment period of 24 months or more, payment of the yield of 12% each time after 12 months from the date of acquisition of the land (registration in the Land Registry)
    • last payment on the date of settlement of the purchase price of the land sale (sale price excluding proceeds paid)
  • In case of appropriate market conditions, the land can be monetised with a higher yield than the secured yield.
    These conditions are valid from 1.6.2023 for new clients of Agrární půdní fond s.r.o.

Legal audit of APF products by SCHEJBAL & PARTNERS s.r.o., advokátní kancelář

We hereby disclose the audit conclusion for the main products Investment Agricultural Land (IZP), Long Term Investment in Agricultural Land (DIZP) and Individual Portfolio (IP). These products are used by more than 90% of our clients.

IZP, DIZP a IP

Description:

In general, the investment procedure describes on the website to assist the client in the selection of agricultural land for purchase, cooperation in the purchase of agricultural land from a third party. Entering into a forward contract between APF and the client with a percentage increase over the purchase agreement by which the client acquired the agricultural land. The agricultural land is also offered for sale to a third party through a real estate agency. If the sale of the agricultural land to a third party does not take place within the time specified in the forward contract, a purchase contract is concluded on the basis of the forward contract.

Evaluation:

§ Section 3 of the Capital Markets Business Act (No 256/2004 Coll., the Capital Markets Business Act) contains an exhaustive list of investment instruments; although the company calls the purchase of real estate an investment, it is not an investment in an investment instrument and the Capital Markets Business Act does not apply to this service. This is not a case of collecting property from the public, as this service is merely the preparation of documents for the purchase and subsequent purchase of the property from the client. APF is not in a position to dispose of the investor’s property in any way. There is no joint management of the assets of AFP’s clients, as each client owns the real estate assets; AFP does not mediate the purchase and sale, but assists with the conclusion of purchase contracts through a real estate agent.

Conclusion:

We found no deficiencies in this service.

Statement of  Agrární půdní fond s.r.o.

The Company does not accept financial consideration from clients in the form of an equity contribution to the Company. For clients who do not wish to invest directly in agricultural land in the form of a real investment, we offer the option of purchasing bonds. All transactions are transparent and are based on signed contractual documents. APF provides clients with a fixed-income sale security based on an executed forward purchase agreement. The collateral is provided from the company’s own resources.

Agrarian Land Fund Ltd. is primarily an investor that invests directly in agricultural land over the long term. The company’s business activities are mainly provided from its own resources. These financial resources are used to cover any land buy-backs. The company’s main income is profit from the sale of agricultural land. Ancillary income is derived from management fees for the management of client portfolios and brokerage fees shared with the cooperating VCs.

Contact us today!

Are you interested in investing in farmland and want to know more
information? Do not hesitate to contact us to find out more!

I WANT TO INVEST

Documents to download

General Terms and Conditions

Future Purchase Agreement Agreement