Issue link: https://htpgraphics.uberflip.com/i/464860
AGRICULTURE EDITION 25 KNIGHT FRANK | How this can be achieved will vary widely. Some of the estates we help manage, such as Badminton, host high-profile events that attract thousands of paying visitors, while others generate significant amounts of new income from renewable energy. Strategic reviews For many, however, the changes required will be less dramatic. Having conducted a detailed strategic review of an estate, and bearing in mind the objectives of the owner, our management experts may recommend ways to use existing property assets – such as residential, commercial and agricultural buildings – more creatively or efficiently. They will also highlight opportunities to restructure tenancy, ownership and debt structures. Sometimes our advice can simply help to open the eyes of estate owners or trustees to the opportunities that are available to them, and give them the confidence to proceed with new ventures. As well as helping financially, this can be a way to let the next generation become more involved with the estate. But, whatever the advice we provide or solutions we suggest, raising standards will be at the heart of what we deliver. Without an external and unbiased perspective drawn from working with a wide range of the UK's most well-run properties, it can sometimes be difficult for estates to benchmark their own performance or identify the areas where management and process could be improved. Of course, we cannot help our clients to develop and improve their businesses if we ourselves do not recognise and react to the new opportunities that become available to Head of Rural Consultancy James Del Mar has provided strategic advice to some of the UK's most well-known estates, including the iconic Leeds Castle The capital value of farmland continues to rise, and it is now out-performing many other asset classes, even the well-publicised central London luxury residential market. The following are data to the end of Q3 2014. Farmland London luxury residential UK houses FTSE 100 Gold 3-month change 2% 1% 1% 0% –3% 12-month change 15% 7% 10% 5% –9% 5-year change 55% 61% 18% 32% 20% 10-year change 187% 138% 23% 48% 224% The main driver is the classic imbalance between supply and demand. Some of the factors affecting either side of this equation are: • the appeal of tangible assets after the credit crisis • more flexible tenancy agreements • tax benefits • a transparent tenure system • global population demographics • farming economies of scale • changing food-consumption patterns » F A R M L A N D ' S O N W A R D S M A R C H most estates can no longer rely solely on the returns from agriculture " "