For sale – a substantial multi-asset UK based rural property company known as Strutt & Parker (Farms) Ltd

The multi-asset rural property company known as Strutt & Parker (Farms) Ltd is brought to the open market for the first time in its one hundred year history. Based across the counties of Essex, Suffolk and Cambridgeshire the company is one of the largest agricultural businesses in the UK, and has diversified into a rich and varied mixed property portfolio comprising rural, residential and commercial property including the Whitbreads Business Centres brand. In addition, significant investment has been made into a number of renewable energy operations (including 2 anaerobic digestion plants), a natural burial business and a portfolio of smaller commercial lets. A number of strategically located sites have been identified as having medium and long term development opportunities  The diverse portfolio currently generates a significant revenue which will be in the region £21 million for the 2018 financial year and offers exciting potential for growth in capital and revenue value.

The intention of the shareholders is to sell Strutt & Parker (Farms) Ltd as a single share transaction. This is a successful, diversified, multi-facetted business that will be sold as a going concern including all of its employees and their existing arrangements. The sale of the company is being managed  by Savills and Deloitte LLP. 

Farming (just over 30,000 acres in total)

• The farming business is one of the largest farming operations in the UK, combining freehold land and other areas occupied under agreements with third parties:
  • approximately 13,000 acres of freehold farmed land
  • a further 20,000 acres of farmland subject to third party agreements of varying lengths of time
  • Across the counties of Suffolk, Essex and Cambridgeshire the majority of farmland is classified as grades 2 and 3  capable of growing a wide range of crops including cereals, other combinable crops and root crops.

Residential

• A mixed residential portfolio of 121 freehold properties of various styles and types including houses, cottages, bungalows and flats let on various tenancy types
• Gross rent roll of more than £1 million

Commercial

• The Whitbreads Business Centres: - based around two converted farmsteads in Essex, the company now provides 48 serviced office units and associated facilities generating an annual rent roll of circa £400,000. Since its inception in 2010, the office units are now fully let.
• A portfolio of other commercial operations including workshops and light industrial and livery yards generating an annual rent roll of circa £450,000

Renewable Energy

• There are a number of renewable energy enterprises within the portfolio with income derived from a range of technologies including two substantial anaerobic digestion plants, onshore wind, and ground and roof mounted solar photovoltaics.

• The approximate total revenue generated from these renewable energy enterprises is currently £7.6m with considerable potential for improvement as operations reach full maturity.

Natural Burial

• In 2016/2017 Strutt & Parker (Farms) Ltd invested in the development of a natural burial site near Chelmsford. This enterprise is in its infancy and has not yet been operational for a full year.

History

Strutt & Parker (Farms) Ltd was founded and incorporated in 1918 by the eponymous Strutt & Parker families whose association with land ownership in parts of East Anglia dates back centuries. Their reputation for innovation in agricultural development led to other landowners seeking their services as tenants and in partnerships, some of which continue today.

The company has always had a culture of embracing innovation in scientific development to advance physical yields as well as capital investment into improving infrastructure and facilities such as quality crop storage and water management (both drainage and irrigation).

More recently the company has successfully diversified from purely agricultural enterprises as part of a proactive drive for returns from alternative sectors. Strutt & Parker (Farms) Ltd now encompasses an enviable combination of an asset backed business with multiple trading lines and entrepreneurial leadership which is well placed for the future

Alex Lawson Director of Farms and Estates, Savills, comments: “It is well reported that growing regional and global demographics coupled with climate change are driving the need for greater food production as well as increasing the demand for housing and other facilities in the South. Having evolved during the past one hundred years into the company it is today, Strutt & Parker (Farms) Ltd is in an exceptional position to further transform, increase revenue and capital appreciation.”

David Jones Corporate Finance Partner, Deloitte, comments: “In our experience interest is likely to come from a number of sources; due to the scale and diverse asset base and anticipate there will be interest from both domestic and overseas HNWIs. It is very rare for an opportunity of this scale and diversity to come onto the open market in the UK and for the overseas buyer the current weakness of the pound against the dollar adds to the attraction. We also anticipate enquiries from institutions looking for long-term asset backed investments that are blue chip in nature and generating a positive yield, as well as property companies looking for a secure long term investment with various opportunities for growth.“