March 18, 2020

 

8F Asset Management secures US$360 million for salmon farming

 

 

Private equity group 8F Asset Management closed on its US$359-million (EUR321 million) fund to support its Pure Salmon land-based projects in Poland, Japan, France and the US.

 

This phase will support the production of 40,000 tonnes of recirculation aquaculture system (RAS)-raised salmon in the four facilities combined, which were announced over the past year.

 

Institutional and family investors, sovereign wealth funds, insurance company and pensions funds from Europe, Asia, the Middle East and the US deployed capital into the fund.

 

"Having attracted such a highly respected group of investors, shows the level of confidence in the potential of the land-based aquaculture industry and in the ability of Pure Salmon and 8F to successfully deliver their vision," Pure Salmon board director Stephane Farouze said.

 

Pure Salmon's management team will be based out of Abu Dhabi Global Market, the emirate's financial centre.

 

The Polish facility is already up and running and recently received the Aquaculture Stewardship Council (ASC) nod for responsible fish farming.

 

However, the projects in Japan, France and the US are still in the development phases, with Japan expected to break ground first this summer.

 

8F's Pure Salmon has been announcing a series of investments in land-based projects for the past couple of years, the latest being a 10,000-tonne facility in Boulogne-Sur-Mer, France, which will be the largest facility in the EU to date.

 

Construction of the French site will commence in the fourth quarter of this year, with the first harvest of full-grown salmon expected in 2023.

 

The French government offered a "fast track" process to get the permitting done by this fall. The project will share common design features with the Japanese facility in order to speed the process.

 

Earlier in 2019, the company announced its 20,000-tonne US site that will be built in the state of Virginia for close proximity to East Coast customers. The project was to receive US$20 million (EUR18 million) in financial assistance from local government and development agencies.

 

In 2018, the company announced a US$162 million (EUR146.1 million) investment to create "Soul of Japan," a 10,000-tonne land-based Atlantic salmon farm in Japan's Mie prefecture.

 

Pure Salmon continues to develop its other projects in China, Africa and South East Asia, which will contribute towards the global target of 260,000 tonnes of salmon production.