No existing income


Maximum returns sought

Highest LTV

Low yielding asset

Maximised IRR

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Hedge fund making first agricultural acquisition in the UK

No established business, so analysis and modelling to demonstrate serviceability was vital

The deal


  • Two farms in mid-England
  • 975 acres of land
  • Property but no operating business


  • First charge over both assets


  • No existing income
  • Detailed modelling around both farming and rental incomes projected


  • Proven maximisation of IRR versus different pricing metrics
  • Maximum LTV sought to maximise returns


  • Yields in agriculture are low
  • Value in potential businesses had to be proven
  • Senior debt only

Facility Secured

  • 60% LTV
  • Amortisation sculpted in line with business projections according to asset sales


Our client was a hedge fund acquiring two farms in mid-England. Neither had an established business or existing income. The planned businesses had to be modelled, including sensitisation, demonstrating how the loan would be serviced and then amortised over time.

Despite recent growth in the agricultural market, yields remain notoriously low. In seeking maximum LTV, but at an efficient cost, our client settled on 60% LTV option sourced.

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