Farmers find fertile grounds for investment in Sweden
Evanridge - 2009-10-15
Two dairy farmers who launched a property investment company after spotting opportunities for financial growth in the Swedish housing market are opening a third fund to potential investors.
In contrast to a floundering UK property market, Evanridge Properties LLP, founded by Pembrokeshire milk producers, Nigel Evans and Bill Ridge, and former tax inspector Huw Evans, has achieved annual growth of between 14- 15% for investors through its Swedish portfolio.
With a proven three year track record, the company is now launching a third fund with the aim of buying a further £20million worth of property, again in Sweden.
“Property prices in Sweden haven’t experienced the same turbulence as the UK housing market. Prices have remained firm and we are confident that there is more opportunity moving forward,’’ says Mr Ridge, of Vaynor Farm, near Narberth.
Evanridge has invested in fully let apartment blocks in commuter towns in south-western Sweden. Only 40% of the population are homeowners in Sweden and it is the only country in Europe where rents are regulated. However deregulation is now on the political agenda.
Nigel Evans says this would have positive repercussions for property values. “If the rental market is deregulated, rents will increase,’’ says Mr Evans, of Spittal Cross Farm, near Haverfordwest.
The success of Evanridge has taken the partners away from the everyday running of their farms but they say the skills they developed in agriculture have been invaluable.
“There is a misconception that farming isn’t like any other business but that just isn’t the case. The skills needed to run a farm business are no different to any other. Farming involves property and financial management, for us Evanridge is just an extension of this,’’ says Mr Evans.
The partners, who have been joined by former farm business consultant and MBA graduate, Bryony Fitzgerald, had formed a property syndicate before launching Evanridge. It was the interest from others who were keen to do something similar that led to the creation of the investment fund.
Evanridge’s existing investors range from farmers to city professionals, with many seeing its potential for capital growth benefiting their retirement or succession planning strategies.
A third fund is being created because existing clients want to increase their capital commitment and also have family and friends who wanted to invest.