Latvian Forest Company AB’s (LFC) Board of Directors has approved the sale of 193.4 hectares of agricultural land for EUR 386,800 to a Latvian agricultural company. The sales value corresponds to EUR 2,000 per hectare. LFC has granted the buyer a 15-year annuity loan which shall yield an annual return of 9.41 %. LFC secures the claim with a pledged reverse of assets sold. The buyer will invest approximately EUR 800 per hectare in soil improvement.
In addition, the company has cut off a 2.3 hectare farm from a previously acquired property. The farm was sold for EUR 78,000. The 65.5-hectare property with 16,503 m3 of timber stock was purchased for EUR 250,000 in October 2019.
These sales are carried out within the previously adopted framework to streamline the company’s asset base with a focus on forestry and implementing active asset management measures with the aim of creating value for shareholders.
For further information, please contact
Aleksandrs Tralmaks, CEO
+371 29203972
Or visit our website: www.latvianforest.se