Danish FirstFarms sells another 477ha land tranche in western Romania

Danish group FirstFarms announced the sale of another tranche, of 477ha, of the 1,675ha stock of land in western Romania subject to a broader sale agreement reached in 2020, Economica.net reported.

“The potential of a sale has been better than continued operation, which is why a sale of the portfolio has been a natural part of the business model,” the company explained in a statement.

Instead, the group will shift its focus towards its large crop production in the eastern part of the country, CEO Anders H. Nørgaard added, welcoming the satisfactory earnings on the land sale.

Earlier, in 2020, the company sold another 933ha in three stages. The remaining 265ha hectares are expected to be sold in the first quarter of 2022. The total sale price is expected to be DKK 85 million (around EUR 11.4 mln), of which the tranche of 477ha amounts to DKK 20 mln (EUR 2.7 mln), with an EBIT (pre-tax profit) of DKK 10 mln (EUR 1.3 mln). The company had bought the 1,675ha between 2007-2008.

FirstFarms operates in the Czech Republic, Slovak Republic, Hungary and Romania. In all the other three countries, besides crop production, it operates animal farms as well: pig production mainly, and milk production in Slovakia.

Romania is the only country where the group’s business includes ‘land development’ besides crop production, while no animal farm was developed.

(Photo: Andrey Ivanov/ Dreamstime)