AIM-listed property fund manager Braemar Group today re-opened UK Agricultural Land plc for an additional seven-week fundraising round.
At the first close at the end of March, the plc had exceeded its minimum subscription level, and with demand from investors still high, Braemar said, it decided to extend fundraising until 18 July 2008.
The Hale-based group added that a "number of farms have been identified for purchase with the proceeds of the first round of financing" and forecast that British farmland was "at the beginning of a long-term bull run."
The agricultural fund will buy and hold British farmland for a minimum of five years. The land will be farmed, using contractors, with the aim of establishing a qualifying trade for Inheritance Tax purposes. The company expects to benefit from the rising cost of the land as UK prices move into line with those elsewhere in Europe.
Subscriptions to Braemar UK Agricultural Land plc will be capped at an initial £20m. Minimum investment in the company is £10,000. Investments in the company have the potential to be exempt from Inheritance Tax under current legislation, and investments can come from Trusts, Pensions and SIPPs, as well as directly from individuals. The Directors intend to apply to have the Shares admitted to trading on a regulated market in the UK, such as the PLUS-quoted market or AIM, as soon as practicable after completion of the offer.