Reflecting on a strong 12-month period for Brown & Co’s International Valuation and Appraisal team, we are delighted to have been able to assist Saudi Agricultural and Livestock Investment Company (SALIC) during 2018/19 with its recent acquisitions in Ukraine and Australia, and would like to congratulate the SALIC team on its notable achievements.
SALIC is 100% owned by the Public Investment Fund (PIF) of Saudi Arabia. SALIC aims to be a world-class agribusiness investment company focussed on food security. As an investment company, SALIC makes sizeable, meaningful and scalable investments while ensuring a balanced risk optimized portfolio focusing on the food security objective of KSA. In addition, SALIC invests in new projects while taking existing agribusiness projects to new heights and gives back to host countries and other markets while doing so.
Over twenty years of experience of large-scale arable farming
Agri-Business Consultant and Head of Brown & Co’s Central and Eastern European practice, Adam Oliver, based in Torun, Poland, commented “the instructions to deliver the analysis of agricultural production economics for the Ukrainian opportunity led to a programme of extensive inspection, discussion and interrogation of yields, costs, margins, net farm income, risk and overall returns on capital employed. Having 20 years’ experience of large-scale agro-holdings across the region, our Brown & Co team was well-placed to deliver for our client”.
A well-resourced team using state-of-the-art technology
UK-based Partner and Valuer Ed Blundy said “the applied methodology necessary to appraise and value multiple farmed clusters of land, each of between 7,000 and 35,000ha, within tight timescales required careful and detailed planning. With an organised, well-resourced and capable team of people plus our use of state-of-the-art technology including GPS software, it is perfectly possible to inspect large, fragmented agro-holdings efficiently and professionally”.
Brown & Co experience in large-scale on-site grain handling facilities
Adam Oliver reflected that “in Ukraine, as in Russia, South America and the US, large-scale on-farm crop drying, processing and storage facilities, often for 100,000 tonnes per site, are common place and Brown & Co’s experience in dealing with the construction and management of such infrastructure over the years was important when considering the value of such sites as part of SALIC’s acquisition programme”.
Ed Blundy added, “When operating in the global investment arena, we understand that Due Diligence timelines are frequently highly pressured. We are prepared for prolonged periods of high-pressure and focussed work to help our clients meet their objectives. We are committed to achieving the highest standards on behalf of our clients and consider ourselves very well placed in delivering such projects and valuations. Our recent work for SALIC is testament to that”.
Ukraine to Australia: Long-term relationships contribute to positive client outcomes
“Before the closure of the Ukrainian deal, work had begun in Australia” recalls Charles Whitaker, Brown & Co’s Managing Partner. “Our relationship with SALIC and members of its agricultural asset acquisition and management team was founded many years ago during the development of previous farming businesses in Poland and Ukraine. Brown & Co had also delivered property and business advice to other clients in Australia over the years, so with our existing contacts in the country, our ability to assist SALIC again with valuation, economic and wider due diligence in respect of its latest acquisition, was a natural development”.
Ed Blundy commenting on the Australia acquisition: “whilst the land, infrastructure, climate and farming systems are almost entirely different to that found in Ukraine, our approach to valuation and appraisal was consistent and methodical”. Ed, who is a member of the Royal Institution of Chartered Surveyors (RICS), the Central Association of Agricultural Valuers (CAAV) and a Recognised European Valuer, commented “also covering over 200,000ha, the farm in question was less fragmented than the Ukrainian unit, but time of the essence, it was still vital to implement a clear plan of how we would approach the instruction in order to complete our inspections and analysis within the timescales. Our inspection team split up and went to work on day 1, with a combination of stakeholders including sellers, agents and SALIC staff and local partners in order to combine the travel, inspections and data collection as efficiently as possible. Our use of technology helps considerably and modern GPS software has been a game changer for large-scale rural valuations”.
Adam Oliver said “The SALIC team deserves our congratulations for its recent acquisitions, which have cemented its place on the global agriculture stage. It has been a pleasure to work with all stakeholders and we look forward to doing so again in future”.
Brown & Co valuation reports go beyond the requirements of the Red Book
Brown & Co undertakes large and small-scale portfolio valuations for both private and institutional clients around the globe. The Firm is a member of RICS and its valuers are all RICS Registered Valuers, giving confidence to clients worldwide through the upholding of professional standards. What stands Brown & Co apart from other firms is its unique agricultural property and business combination of land agency services and agri-business consultancy. Our valuation reports and appraisals, where necessary, include production economics commentary and analysis, which go beyond the requirements of the Red Book. Our clients tell us that this approach of combining our knowledge and experience of practical agriculture and agricultural economics with RICS-compliant professional valuation work is highly respected and valued.
For more information, please contact:
Charles Whitaker - firstname.lastname@example.org
Adam Oliver - email@example.com
Ed Blundy - firstname.lastname@example.org