New condition for buying farmland in Romania

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New conditions for buying agricultural land. Please read

MONDAY MAY 5 2008:

Due to the very high demand, we must implement the strategies described below, and only for the types clients (also described below), effective immediately:

 

1/ INVESTORS / SPECULATORS:

We give preference to this type of client, who accepts to buy land in the best zones WITHOUT seeking regroupment of plots. The goal is to buy where the potential for added value is the highest. In this context, we buy (in your name) only in zones which are high in demand, and where the plots can resold (if desired) for profit in the near or not so near future (your choice). Until resale (if any), the plots can be rented out. Rent amounts range between 400 and 700 kg of wheat /ha/year, payable at market value at time of payment ( usually end of september / early october).

 

In many cases, it is possible to buy land that is already rented.

 

The price of agricultural land has increased at an average rate of 60€ /ha per month since january 2007 (that's an added value of 720€ per hectare per year, 1020€ /ha since january 2007), this progression will very probably continue until land prices reach the level of 5000€ /ha. After that, it is possible that the progression will slow down, maybe. . .maybe not...

Globalcom buys (in the name of it's clients) in the counties of Buzau, Ialomita, Braila, Constanta, and Calarasi. *see map of counties here *. We can propose up to 3000 hectares spread out over these counties, at an average price of 2500€ /ha, available to buy immediately.

Current prices for first quality soil (CERNOZIUM-HUMUS) range between 2000€ and 3000€ (all inclusive), depending on zone and other factors.

 

2/ FARMERS:

Farmers seek surfaces of land already consolidated (regrouped) and ready to cultivate. Most of them cannot wait for long months until they obtain viable surfaces (plots of min. 50 ha, each for example). Globalcom is already mandated to buy and consolidate a large amount of arable land, we cannot engage in any more such contracts.

At this time, the only farmers we can serve are those who, in the goal of obtaining viable arable surfaces as quickly as possible, agree to buy out existing farming operations, thereby inheriting said farming operation's "arenda " (land rental) contracts.

ARENDA CONTRACTS are not transmissible, it is therefore necessary to buy out the shares of the tenant company in order to "inherit" the contracts. All arenda contracts contain a clause of preemption to buy the land. Arenda contract durations typically range between 5 and 10 years, and are not automatically renewed. The goal of course is not to rent, but indeed to buy the land. Most Romanian owners want to sell.

Generally, farming companies rent anywhere between 100 and 2000 hectares, own 3 to 50 hectares, own one or more farms (often in advanced state of deterioration). They usually own older farming equipment, and sometimes new equipment thanks to SAPPARD funds.

We have several farms to propose, available for immediate purchase, in the counties of Buzau, Ialomita, Braila, Constanta, and Calarasi. *see map of counties here *.

 

3/ IN CONCLUSION:

Whether you are an investor, speculator, or farmer, please understand that we do not perform any viability evaluations, business plans or projections, or any other type of preliminary study, we simply do not have the time. We can work ONLY with clients who are at the very least "ready to take action". In this spirit we will provide you with all elements necessary to make an intelligent and quick decision.

Globalcom management. 

1 hectare (ha) = 2.47 acres
Exchange on 05.05.2008:
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