BFC 0.00% 0.3¢ beston global food company limited

There will be a 10-year lease if it is the farm identified on...

  1. 4 Posts.
    There will be a 10-year lease if it is the farm identified on Real Commercial. Such things as rental escalations are agreed at the outset of the lease. I'm not concerned about then, I am concerned on the simple premise that selling capital items (i.e. a farm), creates a 10-year financial liability.

    In times of selling capital items, some firms will return that capital to investors. What BFC will do is sell the farm and reuse those funds in terms of rent (for a purchaser at a yield of 6-7% is 16 + years to have the farm paid back - in very simple, non-accounting, non-depreciation maths) over 10 years and put more money into things that, in theory, give an outsized return (i.e. > 7% which is the value of the capital associated to the farm).

    I am so skeptical about this approach.
 
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