Austrian group AMB, held by two Austrian families – one of which is also a shareholder of real estate developer S+B Gruppe – has 700 ha of farmland cultivated with sunflower, wheat, corn, soybean and rapeseed and has started wine production under the Liliac brand.
Over the next two years the company wants to buy a further 500 ha of land in southern Romania and with a farmland area of 1,200 ha the Austrian company is set to become a medium-sized farmland owner.
AMB Agro Company – the group’s farming division – is among the few Austrian investors in agriculture, a sector dominated by Italian, German, Arab, Spanish, Hungarian and Danish investors. Austrian companies hold 6.3% of the overall areas controlled by foreigners, which amount to 700,000 ha.
“At present we have around 700 ha cultivated and we sell production in Romania,” says Victor Ciuperca, area manager within AMB Holding GmbH. He says the Austrian company plans to expand the areas it holds, with acquisitions to be made from individual land owners in the area. The Austrian company wants to extend its ownership by 500 ha within the next two years. This would cost it about EUR1 million, according to ZF calculations.
“The end price we pay for a hectare of land – which includes both the land and subsequent paperwork – ranges between EUR1,000 and EUR3,000,” Ciuperca adds. At an average price of EUR2,000 per hectare, the Austrian company has so far invested around EUR1.4 million in Romanian land and plans to invest a further million euros.
Over the next few years the Austrian group wants to also tap woodland, through its AMB Silva Property subsidiary.
“We don’t own woodland in Romania, but we are interested in such acquisitions in the near future,” Victor Ciuperca explains.
While the company has decided to wait a while before making acquisitions, the AMB Wine Company subsidiary bought 38.3 ha of vineyard in the summer of 2010. “We want to reach a total of 65 ha and stop. It is an area we consider large enough for premium wines.”
On the vineyard it owns in Lechinta and in Bartos, Transylvania, AMB Wine Company also has a 600 square-meter plant with a maximum capacity of 100,000 bottles per year, but where only 45,000 bottles per year are produced currently.
“In 2013 we want to double the built area and in three or four years produce 350,000 bottles.” So far the investment is of around EUR3.5 million, but after future plans become reality, the amount could increase to EUR5.6 million.
(English version by Daniela Stoican)