Farmland Partners To Buy 3,696-acre Row Crop Farm For $8.75 Mln

(RTTNews) - Farmland Partners Inc. (FPI) Monday said it has entered into purchase agreements to acquire 3,696-acre row crop farm for about $8.75 million.

The Burlington, Colorado-based farm is located primarily in eastern Colorado, with a small portion of the acres immediately across the border in western Kansas.

The company plans to sign a three-year lease with the seller at an expected unlevered annual cash return of approximately 4.63 percent. The acquisition is expected to close no later than May 30.

The company intends to obtain mortgage financing on the farm at or subsequent to closing in an amount representing approximately 40-50 perent of the purchase price.

When this acquisition closes, Farmland Partners' portfolio will consist of over 11,000 acres of row crop farmland, addressing the increasing global grain demand.

Paul Pittman, CEO of Farmland Partners, said, "We are excited to announce this sale-and-leaseback transaction with a very successful Burlington-based farm family. We think this is the first of several high-quality farmland investments we intend to make in the coming months."