Clients to benefit from our services are institutional investors, accredited investors, high net worth individuals, foundations and endowments looking for an alternative asset class as a diversification tool of a large and sophisticated financial portfolio.

The last few years of “crisis investments” have brought down many large financial firms. A lot of their “assets” where worthless “notional baskets of investments”. Then, many money managers smartened up. They realised that they need  an alternative asset class. A real hedge to the financial products they were holding in their porrfolios. The alternatives are quite simple – gold, oil, commodities and land. While all of the alternatives are easily obtained through ETFs and soft commodities futures market, an increasing number of money managers and pension funds have demanded investments in real assets, such as direct ownership of farmland.

A growing population along with finite surfaces of arable land available have made farmland attractive to investors arround the globe. The 2007-08 food price spike has also put a spotlight on food producing assets. Interest in direct land ownership has been increasingly sought by professional money managers in the last couple of years. And rightfully so, given the fact that only 7% of the world’s surface consists of good arable land.

However, it is difficult to deliver what some of these large pension fund managers want: vast surfaces of cheap land in political stable nations. Usually, you either get one or the other, but not both at the same time. Eastern Europe is beginning to look attractive from these standpoints. There is political stability in most regions, land is becoming cheaper, but it is broken down in many small parcels, many times smaller than 2 hectares each.

It takes the expertise and knowledge of real professionals to find, negociate, buy and compact many small parcels of land into one big, compact operationable farm. This is where Direct Land Investments SRL. comes in. We will do the work, build, deliver and manage the final product.

As with any investments, there are certain risks associated with direct investments in agricultural land. The main risk is the illiquidity of the investment, such farmland sometimes proving to be difficult to buy and sell quickly. As such, we caution investors that the time horizon should be at least five years, with the understanding that direct investments in farmland are an ideal hedge to inflation, coming with a low correlation with equities, fixed income and currency fluctuations.

Our active management should ensure that this part of your portfolio will bring positive results, regardless of interest rates, financial market returns, inflation, direction of the dollar or the euro. A good soil will yield a crop and will have zero correlation with the above mentioned factors.

We at Direct Land Investments SRL are looking for partners and clients who are forward thinking like us.  If you are genuine and interested, please call us.