Farmland Partners Inc. has entered into agreements to acquire approximately 5,100 acres of permanent crop farmland in California for a purchase price of $110 million from Olam International Limited (Olam).
Olam is a leading global agribusiness company with operations in 70 countries and nearly 70,000 employees. FPI is the largest publicly-traded farmland real estate investment trust in the U.S. FPI's portfolio is broadly diversified across crops and regions, spanning more than 154,000 acres.
The properties are located in California's Central Valley and are dedicated to the production of almonds, pistachios and walnuts. At closing of the acquisition, FPI will enter into a 25-year triple-net lease agreement with Olam on a revenue share basis. During the term of the agreement, Olam will operate and maintain the properties and improvements.
"We had been looking for the right partner who sees the long-term value of farming, while we are looking for an asset light model to participate in the production economics of the tree crops. Farmland Partners, whose success is based on strong partnerships with farmers, is therefore a strategic fit for our business model," said Olam's Managing Director and CEO of Edible Nuts, Ashok Krishen in a statement.
Closing is subject to customary conditions.