Turkish investor pays EUR 23.5 mln for agri farm in western Romania
TC Capital, a company owned by Turkish businessman Ali Çapa, bought for EUR 23.5 million a grain and oilseed farm located in Timis county, western Romania.
The farm operates 6,550 ha of arable land, located 35 km from Timisoara. French company Gespie SAS was the seller.
This is the second investment of the Turkish investor, after the takeover of KC Agro in 2014. KC Agro manages two farms totaling circa 2,900 hectares located in Buzau and Braila, in eastern Romania. Turkish investors Ali Çapa and Ertugrul Karaevli manage both companies.
"Agriculture is very much shielded from the negative impact of economic crises. The performance and valuations in this sector stay intact during downturns, like the one we are experiencing due to the COVID-19 pandemic. We haven't seen the adverse effects of the crisis in agriculture so far. The price of agricultural land has been on the rise, now for the 20th consecutive year. Therefore, this makes the capital gains aspect of the business quite strong," said Ali Çapa, CEO of TC Capital and Managing Partner of KC Agro.
The new acquisition was concluded in July 2020, with the assistance of the law firm Dentons, and was partially financed by Libra Internet Bank. The new owner intends to diversify operations into intensive, high value-added agricultural activities, such as blueberry and hazelnut plantations, and extensive production of cereals and oilseeds.
(Photo source: TC Capital)