Drought Shows Little Effect on Demand as Illinois Farmland Sells for $5,082,000
(firmenpresse) - WATSEKA, IL -- (Marketwire) -- 07/27/12 -- The July 20 auction of 605 acres of farmland in Iroquois County, Ill., drew a strong field of close to 75 bidders, resulting in a sale for $5,082,000, with managing the sale.
Taken as a whole, the land sold for $8,400 per acre, with some going for as much as $10,441 per acre.
The property was sold by Vulpes Agricultural Land Investment Management, a Singapore-based company headed up by hedge fund manager Stephen Diggle. "Vulpes has embarked on the exciting and important work of creating a diversified global farm investment portfolio, with assets already in place in the United States, Uruguay and New Zealand. Since Vulpes began acquiring land in 2009, the portfolio has yielded about 5 percent and has seen price appreciation of about 35 percent," said Murray Wise, chief executive officer of Murray Wise Associates. "Vulpes is in the process of raising a new $150 million farm fund, and a necessary part of portfolio management and fund raising is selling an asset from time to time. We are honored to have worked with them on the sale of this property, with which the results are tangible proof of the price appreciation their portfolio has experienced.
Executive Vice President Joe Bubon said bidders "included farmers, local investors and institutional investors, with operators and local investors prevailing on all the tracts, with six different buyers purchasing tracts."
The current drought appeared to have no impact on demand for the land, according to Bubon.
"Some people have been wondering how the severe drought would affect demand for farmland. Because of the limited amount of land for sale, we haven't had a lot of chances to get an answer to that question, so this auction provided a good test," said Bubon.
"What we found was that farmers and investors are still focused on the long-term benefits of owning land. The strongest bidding came from farmers and local investors, which continues a trend we've seen all year. These are the people who understand farming best, and they know that this drought is a one-year event that has little to do with the long run value," Bubon added.
Murray Wise Associates LLC, headquartered in Champaign, Ill., with additional offices in Florida, Idaho and Iowa, is a leading national agricultural real estate marketing and auction company. The company also manages farmland assets for individual clients in Iowa, Kansas, Kentucky, Missouri, Minnesota, Nebraska, North Dakota, Oklahoma, South Dakota and Wisconsin.
Individuals seeking additional information about the auction may visit or call 800.607.6888.
For more information:
Carl Carter
205-823-3273
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Datum: 27.07.2012 - 14:05 Uhr
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News-ID 169449
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