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Brown&Co Research CEE Land Market Brief 2014

CENTRAL AND EASTERN EUROPEAN LANDMARKET

BRIEF 2014 A review of agricultural markets in Poland and Romania

ONE OF THE LARGEST AND MOST EXPERIENCED LAND MARKET TEAMS

IN CENTRAL AND EASTERN EUROPE

02. Introduction 03. 2014 Wheat Price Movements - The Effects 5RPDQLDQ /DQG 'HÀQLQJ DQG 9DOXLQJ ´4XDOLW\µ 10. Poland & Romania; Setting the scene for institutional investment 12. Polish Land; Demonstrates depth and resilience of a developed market

brown-co-international.com

Brown&Co Research CEE Land Market Brief 2014 Brown & Co Res arch Central & Eastern European Land Market Brief 2014

Adam Oliver a.oliver@brown-co.pl

Central & Eastern European Land Market Brief 2014 Introduction

Brown & Co are are unique in having a permanent presence in the

Brown & Co have recently announced the launch of Agricultural Asset Management (‘Agri-AM’), a joint venture with Dexion Capital, which aims to bring the investment case for agriculture to a wider audience, making the asset class more accessible. Agri-AMwill invest in farmland in the US, UK, and Central and Eastern Europe. In the US, Agri AMwill source attractive farmland purchases and work with local farmers sharing business risk and income through a combination of land leases, crop share and and custom/ contract farming. Capital investment will also be made, to improve under-invested farms, and increase farmoutput through the adoption of innovative technology and latest farming practices. Agri-AM provides exposure to trends in rising farmland values and commodity prices, which result from long-termglobal increases in the demand for food, combined with a shortage of farmland supply and capital investment. Agri AMwill provide investors with a source of diversi%ed, alternative and secure returns of between 8-10% (net of fees) for the US and between10-14% for CEE. The venture combines Brown & Co’s local farming, land management and acquisition knowledge with Dexion Capital’s own investor network and experience inmanager selection. region for over 15 years.Working across the region, amanagement/ advisory role has been carried out on in excess of 750,000 hectares andmore than US$150m worth of land has been valued.

If we look back 15 years the CEE markets, to a certain extent were similar in terms of prices, stability and lack of robust rule of law. Now they could not be more di#erent. Poland has matured in ways di$cult to imagine when EU membership was secured 10 years ago. Ukraine, at the other end of the spectrum, is undergoing challenges that will delay investment for many years to come. Romania and Bulgaria are widely considered the greater opportunity, given where land prices currently are and yet there are still substantial challenges to be faced in acquiring and consolidating land and simply “getting things done”. Within this publication we explore the main issues a#ecting the agricultural markets in Poland and Romania. Finally, we are grateful to Martin Davies, CEO of Westchester Europe who has kindly contributedWestchester’s perspective on these markets - through a Q&A article on page 10. The agricultural markets of Central and Eastern Europe DUH EHFRPLQJ VXEVWDQWLDOO\ PRUH GLYHUVLÀHG

02 CEE Land Market Brief 2014

Brown&Co Research CEE Land Market Brief 2014 Brown & Co Res arch Central & Eastern European Land Market Brief 2014

Adam Oliver a.oliver@brown-co.pl

INTRODUCTION 2014 Wheat Price Movements - The Effects Northern hemisphere wheat exporters (USA, Europe, CIS) have seen an increase in production of around 10% on their 3 year average production in 2014. Stocks to use ratios for both wheat and coarse grains are anticipated to build for the second consecutive year and could reach 20% for coarse grains and 26% for wheat – the highest level seen over the last 10 years. At the farm gate level however, this year has been at least as much about the quality of wheat produced as the increase in supply and subsequent decrease in global prices; EU wheat production has been almost back at 2008 levels and yet a signi%cantly greater proportion of the crop was feed quality adding an additional marketing challenge in an already di$cult market. The general market view is that production is up, but at the expense of quality. France for example normally produces c. 20mt of Grade 1 wheat and c. 5mt of Grade 3; this year Grade 1 was estimated at 7.5mt whilst Grade 3 was estimated at 17mt. Following the second consecutive \HDU RI JOREDO JUDLQ VXUSOXV PDQ\ RI Brown&Co clients across the CEE region have suffered a 20-25% reduction inwheat prices in comparison to 2013. This article aims to review some of WKH JOREDO IDFWRUV DW SOD\ H[DPLQH WKH impact at the farmgate level andwhat WKLVPD\PHDQ ORRNLQJ IRUZDUG

Price ranges (in conjunctionwith RYHUDOO PDUNHW YRODWLOLW\ KDYH DV D result varied 10-25%subject to VSHFLÀF SURWHLQ OHYHOV²FRPSDUHG WRPRUH OLNH LQ UHFHQW \HDUV This has once again underlined the marketing challenge to producers ZKRVH DELOLW\ WRPDQDJH SULFH ULVN IUHTXHQWO\ VWDQGV RXW DV WKH VLQJOH biggest factor in setting apart the top 5%performing business’ compared to the average.

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Fig 1.1: Major Wheat 3URGXFHUV

0DUNHW YRODWLOLW\ KDV LQFUHDVHG VLJQLÀFDQWO\ LQ WKH ODVW \HDUV DQG WKDW LV RQO\ OLNHO\ WR FRQWLQXH Production risk is being concentrated in fewer geographical areas. Global corn production is becoming more dominant and is anticipated to hit 1 billion tonnes by 2016. However, the four largest producers (US, Argentina, Brazil and Ukraine) now account for c. 80% of global exports. This compares with the top 4 wheat producers accounting for c. 63% of global exports. In other words, supply side risk is increasingly being concentrated in the hands of fewer, larger exporters. This means that when the world does see adverse weather events that hamper or limit production, it now has a multiplier e#ect on the markets. But what does all this mean in terms of pro%tability of farming business’ – speci%cally in the CEE region (using UK as a comparison). Brown & Co are active across the region and have compiled data speci%cally for wheat Costs of Production (COP) in order to compare 2013 harvest COP’s with 2014. The data comprises of actual data and forecast data given sales of 2014 harvest crop are ongoing.

If we look back for amoment to 2013 harvest – wheat prices were riding on the back of supply side shocks and typically themarket ranged from US$175 – 250/t ex farm. Costs of production ranged from$163 – 245/t and yields ranged from 4.15t/ha (Romania) to 8.80t/ha (UK).

Fig 1.2: Per Tonne Costs of Production DQG VDOHV SULFH IRU +DUYHVW 86 W Source: Brown & Co Data

Sales Price Finance* Machinery & Depn. Property Labour Variable Costs

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Costs of production on a per hectare basis increased by an average of 4% but due to increased yields, fell on average by US$8 on a per tonne basis - only marginally o#setting the dramatic sales price reduction. Turning to 2014 and the change is dramatic. 6DOHV SULFHV ZHUH DQ\ZKHUH EHWZHHQ and a huge 34% less (averaging 25% DFURVV WKH IRXU GDWD VHWV DQG UDQJHG IURP 86 W H[ IDUP

Fig 1.4: Comparison of 2013 vs. 2014 Net margin Per

Tonne Estimates Source: Brown & Co Data

2013 Net Margin 2014 Net Margin

Fig 1.3: Per Tonne Costs of Production DQG VDOHV SULFH IRU +DUYHVW 86 W Source: Brown & Co Data

Sales Price Finance* Machinery & Depn. Property Labour Variable Costs

Therefore in 3 out of the 4 cases (UK being the exception), wheat crops have lost money. Clearly, wheat is only one crop in a rotation but the sheer scale of switch has caught many business’ o# guard. Even though yields were up 10% on an average basis compared to 2013 harvest, all countries (except Ukraine) have seen an increase in costs of production which coupled to a 25% price decrease has meant that net margins (on a per tonne basis) deteriorated by a very signi%cant average of US$47/t in 2014 vs. 2013.

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Sowhat does all thismean for farming business’ across the region?

As we enter 2015 it is perhaps worth noting, once again the fundamentals. The short termprospects remain challenging for producers; the longer term thesis remains one of continued growth in demand. The USDA anticipate that global grain trade in coarse grains will increase by 23% over the coming 10 years but of course this is only going to happen if signi%cant investments in production capacity and infrastructure are made. Brown & Co are actively involved in attracting institutional capital in to the sector, both for the United States and Central and Eastern Europe. Following on from the current price declines, long termgrowth in global demand for agricultural products will continue, biofuel demand will remain - particularly in the US, EU, Brazil and Argentina and as demand continues to grow – we are only one weather event away from a draw-down of global grain stocks. At the time of going to press the US Mid west has su#ered from extreme cold and snow and in Russia winter crops are in poor condition going intoWinter raising fears of damage to wheat crops and lower yields ... markets are on the move once again. detailed planning is at the heart of EULQJLQJ WRJHWKHU WKH RYHUDOO VWUDWHJ\ ZLWK WKH GDLO\ GLVFLSOLQH RI PDQDJLQJ FURSV SHRSOH FDVK DQG FDS H[S 7KH DYDLODELOLW\ RI JUDQW IXQGLQJ LQ 3RODQG DQG 5RPDQLD LV YLWDO IRUPDQ\ business’ seeking to invest in capital SURMHFWV QH[W \HDU DQG WKLV IXQGLQJ LV QRW JRLQJ WR EH DURXQG IRU HYHU )LQDOO\

It is only now that cash

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Brown&Co Research CEE Land Market Brief 2014 Brown & Co Res arch Central & Eastern European Land Market Brief 2014

Stephen Hall s.hall@brown-co.com

Romanian Land; 'HÀQLQJ DQG 9DOXLQJ ¶4XDOLW\·

The concept of quality can not be understated in Romania, however it stretches far beyond the basics of soil type and classi%cation. Away from the Carpathian mountins and some areas of very light, dry soils in the south west, soil quality is often not the problem in Romania with excellent black soils running down the east, high clay content, water retentive soils in the west and loamy silts in the south. More important when assessing “quality” in a farm is rainfall, infrastructure, the quality of the Title and the level of consolidation (i.e. – is the land arranged in blocks of 5ha, 50ha or 500ha). In this article- we examine each element.

As is the casewith DOO IDUPODQG SXUFKDVHV WR XQGHUVWDQG TXDOLW\ is to understand value.

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To comply with the pre-emption requirements, the vendor must publicise the sale of land, stating all the relevant terms, at the City Hall and on the website of the Ministry of Agriculture and the Department for Agriculture and Rural Development (“DADR”). The sale will remain public allocated to certain stakeholders. The pre-emption rights provide for SULRULW\ RI SXUFKDVH DW DQ HTXDO SULFH and on the same terms as has been RIIHUHG E\ D WKLUG SDUW\ WR &R RZQHUV WHQDQW IDUPHUV QHLJKERUV RI WKH ODQG IRU VDOH DQG 4: the State. $V RI VW -DQXDU\ (8 FLWL]HQV are entitled to purchase agricultural ODQG LQ 5RPDQLD ,Q )HEUXDU\ D QHZ ODZZDV SDVVHG ZKLFK FKLHÁ\ sets out a series of pre-emption rights 6XUSULVLQJO\ WR VRPH WKH /DQG 7LWOH SURFHVV LQ 5RPDQLD LV UHODWLYHO\ developed and as amember of the (8 WKH SURWHFWLRQ RI SULYDWH SURSHUW\ sits front and centre as one of the four rights of membership. It is still the FDVH KRZHYHU WKDW WKH TXDOLW\ RI WKH legal papers relating to land can range IURPQRQ H[LVWHQW WR H[FHOOHQW DQG YHU\ IHZSXUFKDVHV ZLOO EHQHÀW IURP a perfect set of Land Titles. Even if the title documents relating to an area of ODQG DUHPLVVLQJ ZLWK WKH ULJKW OHJDO WHDP WKLV LV D UHODWLYHO\ VWUDLJKW IRUZDUG process that can be enacted to bring WKH SDSHUZRUN LQWR OLQH DOWKRXJK WKLV GRHV WDNH VRPH WLPH DQG H[SHQVH being circa €300-€500 per ha.

Romanian Land Title and Land Ownership

for 30 days, during which time all bene%ciaries of the pre-emption rights are able to match or beat the terms publicised. Although at %rst glance the above formality seemed like a restrictingmeasure on free market activity, it has had the bene%t of publicising some of the land transactions in an area and therefore allows an element of transparency into the marketplace. The majority of sales publicised in the above process will be small scale transactions, as larger deals are usually done in a share transaction, which does not fall within the regulations set out above, and therefore the public %gures are likely to understate the“real”value of land. More so in Romania than in many markets, there is a real premium for scale and areas of 50ha – 100ha or more of consolidated land can attract between 50-100% premiums on land sold in 1-5ha blocks. For many, this forms part of a land acquisition business plan, where a farming company acquires a leasehold business (which by nature will have a large number of landlords all owning 1-5has, but also bene%t fromone of the higher pre-emption rights) and spend time purchasing the freehold from the individual landlords, consolidating the freeholds into areas of 50-100ha or more and adding signi%cant value in doing so.

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Land values for different areas ZLWKLQ 5RPDQLD ERWK IURPD OHDVHKROG SHUVSHFWLYH EXW DOVR LQ IUHHKROG IURPVPDOO DUHDV RI ODQG to large areas of consolidated land.

NorthWest P: 2,500 - 3,500/ha C: 4-5,000/ha

Lasi

Cluj-Napoca

North East P: 2,750 - 3,500/ha C: 4-5,000/ha

Center P: 2-3,000/ha C: 3,500 - 4,000/ha

West P: 3,250 - 4,000/ha C: 5,000 - 7,000/ha

Brasov

Timisoara

South East P: 3,250 - 4,000/ha C: 5-6,000/ha

South P: 3,250 - 4,000/ha C: 5-6,000/ha

P = Primary market, i.e. purchasing as individual parcels with all mapping/ legal work included. C = Consolidated market i.e. larger blocks of land typically >50ha in largely contiguous areas.

SouthWest P: 2-3,000/ha C: 3,500 - 4,000/ha

Ploiesti

Bucharest

Craiova

Constanta

Climate Rainfall, or lack of it is a major restriction on productive capacity in Romania with levels ranging from 300mm in the very south to 600-700mm in areas of the west and north east. Understanding historic rain data is vital in assessing an areas productive capacity.

Infrastructure Where natural rainfall is irregular or low the ability to invest in irrigation can both mitigate a catastrophe in a dry year and improve yields in a “normal” year. Under Nicolae Ceausescu huge irrigation infrastructure projects were implemented on an area approaching 3m hectares although large areas never actually became operational. Much of the area remains defunct but in parts, largely due toWorld Bank and EU funding - there is now an operating infrastructure. Assessing this as part of a detailed Due Diligence process ahead of acquisition is crucial as whilst EU funding (up to 50% historically) for rehabilitation has been available - both the process of applying for funding, and of actually re-instating systems is complex and capital intensive.

CEE Land Market Brief 2014 09

Brown & Co Research Central & Eastern European Land Market Brief 2014

Martin Davies CEO, Westchester Group of Europe Ltd

Poland & Romania; Setting the scene for institutional investment

4 $QG UHODWLQJ WR Agricultural investment RSSRUWXQLWLHV²ZK\ GR \RX thinkPoland is compelling? Poland is one of the few Eastern Europe countries within the European Union where consolidated freehold ownership in scale is possible. Land farmed by the state farms in the communist era was not subject to a restitution process as it was in most other eastern European countries. The Agricultural Property Agency (ANR) was set up by the government to handle sales and leasing of farmland owned by the state. The 2.8m ha owned by the state in 2005 has been reduced to 1.8m ha in 2012, through a lease restructuring program. Leaseholders have been able to exercise a pre-emption right granted by lease agreements, having the opportunity to buy land, subject to agreeing to 30% of the lease area being surrendered and sold by a tender process. Private land sales have generally been at premiumover those of ANR land. In 2013 this premiumwas approximately 21%, making it worthwhile to navigate the bureaucratic process

MartinDavies CEOofWestchester (XURSHHQWHUV LQWRD4 $VHVVLRQRQ ZK\:HVWFKHVWHU D OHDGLQJDJULFXOWXUDO DVVHWPDQDJHPHQW FRPSDQ\ ²KDV decided tobegin investing in theRegion.

4 :KDW DUH WKHPDLQ UHDVRQV ZK\:HVWFKHVWHU are considering investing in Poland? First and foremost Poland is one of the strongest performing economies in Europe. GDP in 2013 was US$517.5 billion, 3% of the EU total, with yearly growth between 2008 and 2013 of 2.7%. Bene%ting from a diversi%ed economy, Poland was the only country in the European Union not to su#er recession after the %nancial crisis of 2008. A signi%cant net exporter of goods and services, it has recently moved into an overall trade surplus. IMF and UK Foreign O$ce forecasts predict long-term annual growth in the economy of 3%.

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to purchase the land under the lease restructure program at a discount to the openmarket.

signi%cantly below those in other European countries. Even when accounting for minor di#erences in productivity there is no justi%able reason for land in MecklenburgVorpommern in NE Germany to be worth €25,000-30,000/ha and similar land in Pomorskie, 500km to the east to be worth €7,000-10,000/ha. Parity in values is unlikely but there is scope for further convergence.

Opportunities still exist to purchase companies with ANR leases, which are subject to restructure. The cap of 500 ha that can be purchased by an individual company and the requirement that a company buying land has majority Polish ownership create some complications but purchase of leased land using pre-emption rights presents a good opportunity. The foreign ownership restriction will be removed in May 2016.

Poland - Historic ANR and open market land sale values and ANR lease rates

There has been signi%cant appreciation in freehold land prices since the end of communist rule in 1989. Values however are still at levels

4 $QG KRZGRHV Romania compare?

companies currently own around 8.5%of Romanian farmland. There has been substantial appreciation in value in Romania in the last 10 years, with annualised capital growth in excess of 35%between 2002 and 2012. Land values range fromEuro 2,400 – 4,000/ha for individual plots but where contiguous land plots have been amalgamated to create larger blocks there is a signi%cant uplift in value, which is independent of the general land value trend. Blocks of land in excess of 20 ha invariably are twice the value of individual plots which could be as small as 0.5 ha. Good opportunities for investment exist in Romania and Poland. Patience in %nding the right opportunity is paramount and in acquisition rigour and a robust due diligence process is essential in these emerging markets that do not yet have the same level of sophistication as Western Europe.

Whilst not considered such a stable place to do business as Poland, Romania is starting to make progress in reducing corruption in government and strengthening the rule of law. Romania was ranked 69th out of 177 countries in the world surveyed in 2013 for Transparency International’s Corruption Perception Index, having ranked 70th in 2008. The IMF predict total GDP growth in 2014 and 2015 respectively of 2.4% and 2.5%. There is no restriction on foreign ownership of land in Romania. Foreign investors are entitled to establish wholly foreign-owned companies in which they can acquire land. In the majority of instances, the absence of complete cadastral information and the land book (land registry) have slowed acquisition. This has occured following the restitution process and more recently the pre-emption law changes, but it is estimated that foreign individuals and

CEE Land Market Brief 2014 11

Brown&Co Research CEE Land Market Brief 2014 Brown & Co Res arch Central & Eastern European Land Market Brief 2014

Wojtek Behnke wojtek.behnke@brown-co.com

Polish Land; Demonstrates depth and resilience of a developed market

Poland’s landmarket has gone through a period of sustained growth over the SDVW ÀYH \HDUV 7KHPRVW PDUNHG increases in value have occurred in the prime arable sector with sub sectors following suit - albeit at a steadier pace. Prime values have risen at an average annual compound rate of 14% over the last 5 years, in e#ect doubling the value of highly productive, prime arable land. This is due to a variety of reasons that have, through the period, led to an increase in pro%tability (higher yields,

professionalisation of the sector, higher overall commodity prices, higher EU Single Farm Payment) coupled with greater access to capital. In Poland there are two markets, transactions undertaken by the state and transactions undertaken by the private sector. National statistics can be misleading with the average price of state sold land in 2013 billed at £4,259/ hectare but land in the private sector known to be trading for as much as £13,000 / hectare (Euro 15,000/ha) su$ce to say, there is very little transparency on the private market.

Prime values have risen circa 100% on the back of increased FRPPRGLW\ SULFH

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Driving Demand Driving themarket has EHHQ SUHGRPLQDQWO\ D PL[WXUH RI GRPHVWLF

A back drop of strong global commodity prices has given a further boost to overall demand for farmland throughout this period. Though more recently a cooling o# of prices has taken the wind from the market and values are thought to be retracting slightly. Polish farmers have bene%ted from improved prices, preferential state run credit and grants for machinery and buildings which the shrewdest of farmers have exploited to their bene%t. This puts them in a strong position to buy or rent further land. International interest in Poland’s farmland comes from the %nancial sector and the farming sector. The former looking for tangible investments o#ering competitive market returns and the latter seeking to expand successful European farm business models in a stable country with strong economic and political fundamentals. Both groups have maintained an interest in Poland’s land market and have been actively involved.

GHPDQG RQ WKH EDFN RI KHLJKWHQHG SURÀWDELOLW\ LQ UHFHQW \HDUV DQG IRUHLJQ LQWHUHVW ERWK SULYDWH farmers and farmland funds.

Driving this was sales at the domestic level which have been buoyed by state sell-o$s under recent legislation which initiated a process of land reclamation from farmers leasing state owned land over on area of 414ha. The State gave tenants a right of pre-emption, in return for handing back 30%of the land they were leasing. This meant the land handed back to the State has subsequently (and is) been sold through restricted local auctions to local farmers resident in the immediate area. Simultaneously those companies leasing land, and having given back 30%of their leased area have gone on and acquired or are in the process of buying out their leasehold from the State resulting in a particularly active time for the Polish landmarket.

CEE Land Market Brief 2014 13

The State continues to LQÁXHQFH WKH VXSSO\ VLGH of themarket through WKH ÀQDO VWDJHV RI LWV privatisation programme

Sourcing 6XSSO\

7KH 6WDWH FRQWLQXHV WR LQÁXHQFH WKH VXSSO\ VLGH RI WKHPDUNHW WKURXJK WKH ÀQDO VWDJHV RI LWV SULYDWLVDWLRQ programme but the private sector KDV GHYHORSHG VLJQLÀFDQWO\ RYHU WKH ODVW WKUHH \HDUV 7KH GHYHORSPHQW RI the private sector is based on smaller farmers now consolidating and becomingmore professional so the DYHUDJH IDUPVL]H LV QRZ LQFUHDVLQJ 2SSRUWXQLW\ H[LVWV ERWK IRU FRQVROLGDWLQJ smaller farms and also in the larger end KD RI WKH IDUPVL]H UDQJHZKLFK tends to be less crowded. Who is selling land in Poland - large farms, usually former state farms are now sold by corporations which often hold a combination of freehold and leasehold rights to land. There are very few opportunities publicly marketed with transactions tending to occur o#market. On the domestic market there are many farmers looking to sell smaller units and the more successful growers are expanding intomore viable units.

Rents have increased signi%cantly on the back of sustained high commodity prices and again the prime arable sector has seen the biggest increases. In prime arable areas rents have achieved between GBP 100/ha (Euro 126/ha) and GBP 450/ ha (Euro 570/ha) for large areas of very high quality land. The competition in these areas is so tight that farmers seemhappy to pay over the odds for land rents, these extremely high rents are a recent phenomenonmost likely a result of pent up demand in speci%c regions where farmers have heavily invested and needmore land to justify the returns. Across the nation and over the past 10 years there has been steady rental growth of about a doubling every 5 years as the market has developed. In 2003 average rents were about £33/ hectare and very similar across the country but by 2013 the disparity between regions has grown and the country average is now about £131/ha. The state still leases to farmers 1.25mhectares in the ag property stock of the treasury. Out of this area about 304k h/a is available for purchase from the state. Attractive opportunities are available to collaborate with the occupiers of state owned land.

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Foreign Ownership Effect

FromMay 2016 EU citizens will be able to purchase agricultural land in Poland directly (corporare structures are the current preferred vehicles). There is currently much debate about how this may a#ect the market. Direct foreign land ownership has not created a huge barrier to Polish land buyers and post the ban it is unlikely that any major value adjustments will occur. Certainly there is likely to be an upsurge in interest for land as the perception from the market will be that barriers to entry have been lifted but the relationship between ease of transaction and value is not necessarily directly linked.

The fundamentals that drive land value aremore linked to SROLWLFV HFRQRP\ DQG WKH UXOH RI ODZZKLFK DUH OLNHO\ WR UHPDLQ FRQVLVWHQWO\ VWURQJ LQ 3RODQG 2Q D ORFDO OHYHO WKHUH LV DQ LQÁXHQFH RI IDUPHUV XUJHQWO\ ZDQWLQJ WR VHFXUH ODQG EHIRUH the ban is lifted.

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- Technical due diligence - Farmland and asset valuations 6DOHV DFTXLVLWLRQV DQG ODQGEDQN RSWLPLVDWLRQ - Asset management %XVLQHVV DQDO\VLV EXGJHWLQJ wojtek.behnke@brown-co.com