A failed transaction on the Romanian land market. FirstFarms and AP Pension stopped the negotiations

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FirstFarms, a company owned by Danish investors with land plots in Romania, Slovakia and Hungary, has interrupted the partnership with AP Pension, an occupational pension company in Denmark, which would have led to massive investments in the arable land market in Romania.

According to a joint announcement, the officials of FirstFarms and AP Pension said the companies have chosen to interrupt the dialogue regarding the trade of 3,000 hectares and appurtenant buildings in East Romania. The parties unfortunately have to conclude, that it has not been possible to reach a mutual satisfactory agreement.

”We had jointly set a deadline as to when we would agree on the matter. Unfortunately, we did not succeed to reach an agreement before that deadline. Therefore, by mutual agreement, we have decided to break off the dialogue in full harmony”, says CEO in FirstFarms, Anders H. Nørgaard and CEO in AP Ejendomme, Peter Olsson.

The two entities wanted to exploit 20,000 hectares in Romania. However, the investments will continue, FirstFarms looking for new partners.

According to the CEO in FirstFarms, giving up this partnership will not affect the future investments in arable land in Romania.

In May 2007, FirstFarms established a platform in Romania with the foundation of a Romanian subsidiary, FirstFarms s.r.l., which purchased farming companies and land in Romania and runs the agricultural companies in Romania. Since its establishment, the Danish investors have purchased agricultural land and companies divided between Eastern and Western Romania.

As per January 2017, FirstFarms owns a total of 5,263 hectares of land in Romania. Due to the circumstances, by joining the land areas, not all land is operated, but the company is working on getting it land registered and joined, so large-scale operation can take place.

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