The company intends to raise the money to achieve this goal and secure working capital from a EUR4.8 million issue of shares on the Frankfurt Stock Exchange where it is listed.
The presence of German farming investors in Romania can be explained by the undervalued arable land price compared with Western European countries.
One can buy a hectare of farmland in Romania for EUR2,000 to EUR5,000, while in Germany one would have to pay EUR16,000 to EUR25,000.
Moreover, Romania’s arable land is considered to be among the most fertile in the entire European Union and the country also has its Black Sea frontage as a competitive edge.
As a result, other German investors have been attracted by Romania’s farmland in recent years, such as private equity fund Germanagrar (8,000 hectares both owned and rented) and German tycoon Klemens Tonnies via Orgapic (4,500 hectares).
(English version by Loredana Fratila-Cristescu)