Argentine Agricultural Farmland Prospectus

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With increasing global pressure on food supplies, an investment in farmland is a compelling opportunity. Cleints can opt for two investments giving 66% or 160% return. This offers you the opportunity to invest for either 5 or 10 years and see contractual returns paid annually.

Transcript of Argentine Agricultural Farmland Prospectus

  • Farmland Argentina

    160% returns fixed over 10 years5 year plan available - SIPP compliant

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  • Secure yet attractive Key investment dataAs part of our continued commitment to bring you the best eco and alternative

    investments available, we are pleased to be able to offer you the opportunity

    to purchase productive farmland with a 5 or 10 year re-purchase contract.

    With increasing global pressure on food supplies, an investment in farmland

    is a compelling opportunity. Farmland in the UK might seem to meet

    these requirements, but it remains very overpriced, so the net returns are

    proportionately low. We have sourced this investment because farmland in

    northern Argentina traditionally the granary of the world is a fraction of

    the price of UK land, with crops traded on the same world markets giving

    investors far higher returns.

    Argentine farmland is highly fertile, producing two crops per year and it is

    only around 30% of the price of UK farmland. Although crop prices are subject

    to short-run fluctuations, the long-term trend is to move steadily upwards,

    slightly ahead of inflation. This reflects the growing global population, and

    the rising demand in Asia for meat that requires a high input of cereal based

    feed. Therefore, we believe clients will see a good return, with land ownership

    giving increased security.

    This investment is offered by an Argentine public company with very large

    land holdings in the northern part of the country. It is raising funds to bring

    marginal land under cultivation, and to finance farm machinery increasing

    food production and providing employment in one of Argentinas less developed regions.

    This deal is structured to enable investors to purchase the land at a one third

    discount of its current value. The farm simultaneously offers you a contract to

    re-purchase the land by making Annual Payments and a large Final Payment.

    This structure gives you the security of proven contractual returns and land

    ownership rights making it a very attractive package.

    Land is purely used to grow crops

    There is no debt on the land

    Over $12 million dollars invested in this project to date

    You can invest with cash or via a SIPP

    Crops are wheat, soy, sunflower, maize and sorghum

    Minimum investment 12,000GBP or $16,000USD

    100% track record of client payments since conception in 2007

    The farmers control 60,000 hectares of land in Argentina

    Payments made to you annually

    Argentina sells crops to countries all over the world

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    Call us +44 (0)20 3012 0306or email info@ecoinvestments.co.uk

    5 year plan available - SIPP compliant

    160% fixed return over 10 years

  • Why invest in Argentine farmland?

    Within Argentina interest rates are extremely high; and, as elsewhere,

    loan capital has all but dried up. Thus the sale of land to international

    investors in this fashion is despite the high payments the best

    form of finance.

    Argentina is not a small country trying to be an agricultural producer

    and exporter: it is already a big player in the field. It has the

    infrastructure to do it, and has been doing it successfully for many

    years. Argentina is in fact one of the worlds leading exporters, with

    many countries relying on Argentine produce. Therefore with their

    crops the farm can easily meet the repayments using investment

    returned from the land under cultivation.

    Since 2007 all the previous investors

    in the other phases of this project

    have been paid on time for the

    agreed amounts.

    Total funds raised so far for this specific

    project are over $12million / 7million

    $11.2 billion of unprocessed goods, mainly soybeans, wheat & maize were exported in 2009

    Exports of processed goods totaled $18.6 Billion i.e. animal feed, flour & vegetable oils

    In 2007 16 million hectares of Soya was planted, producing 47 million tons of crop

    In 2007 Argentina was one of the three largest Soya bean exporters in the world

    6 million hectares of wheat produced 16 million tons, of which 14 million tons was exported

    In 2007 4 million hectares of maize produced 20 million tons, 1/2 of which was exported

    In 2008 15 million tons of maize was exported, the 2nd largest exporter globally

    Argentina is the worlds largest export of lemons, sunflower oil, pears and honey

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    Call us +44 (0)20 3012 0306or email info@ecoinvestments.co.uk

    5 year plan available - SIPP compliant

    160% fixed return over 10 years

  • Argentina offers proof that economic openness and trade improve peoples lives. The Times (London), 9th January 2010

    The investmentPurchase and re-purchaseEach investor purchases a defined area of land within a large freehold

    estate. The price is at a discount of one third of its current value the

    value is determined by a very conservative method of land valuation that

    is entirely transparent.

    You are essentially agreeing to buy the land and immediately signing a

    contract to sell it at a higher price. You are offered to choose a re-purchase

    within either 5 years or 10 years by means of an Annual Payment, followed

    by a large Final Payment.

    Dollars and PoundsCrops in Argentina are traded in US dollars, not in the local currency.

    You have the option to invest in either US dollars or GB pounds sterling.

    Farmland in Argentina is priced in US dollars: the amount of land acquired

    will depend on the exchange rate at the time of purchase. However, the

    Annual Payments and the Final Payment will be calculated according to

    the currency in which you invest. This eliminates any currency exchange

    risk for you/your pension pot.

    InsuranceThe crops on the farm are insured. In the event of a crop failure the

    insurance will pay the farm allowing the farm to still then honour your

    payments.

    The locationThe farmland is situated in Santiago del Estero province,

    approximately 1000 km North-East of Buenos Aires. It is an area

    of strong agricultural land, comparable with the Midwestern United

    States. Although the region is not the most developed in Argentina,

    it has good infrastructure and reliable local services. Agricultural

    investment in the region has the advantage of boosting the local

    economy and creating local jobs.

    Argentina is one of Latin Americas greatest success stories. Since

    the 1980s, it has become a flourishing democracy and in the past

    decade it has been a powerful economic player. Agricultural wealth

    underpins its success.

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    Call us +44 (0)20 3012 0306or email info@ecoinvestments.co.uk

    5 year plan available - SIPP compliant

    160% fixed return over 10 years

  • Next steps

    The information in this document (including but not limited to, photographs, illustrations, plans, dimensions, descriptions, tables, projections and prices) are for guidance only. While every effort has been made to offer current and accurate information, errors can occur. Eco Investments makes no warranties or representations as to the accuracy, correctness, reliability or otherwise with respect to such information, and assumes no liability or responsibility for any errors or omissions in the content contained in this document. Within this document you may find links or references to third party material and third party web sites. Eco Investments accepts no liability in respect of the contents of such material or sites. Eco Investments should not be taken to be endorsing, publishing, permitting or authorising such materials or sites. Eco Investments is not a party to, or responsible for, any transaction concerning goods or services available from such third party materials or web sites. Eco Investments will revise the information; services and resources contained in this document from time to time and reserves the right to make such changes without any obligation to notify past, current or prospective visitors to this document.

    The content relating to the past and/or current performance of an investment is not necessarily a guide to its performance in the future. The value of investments or income from them may go down as well as up. Prices quoted may be based on a conversion rate when the document was created and may vary. This is not a regulated investment for the purpose of the UK FSMA (2000) however as a founding member Eco Investments adhere to and follow the Code of Conduct of the Association of International Property Professionals (AIPP).

    The information contained in this document should not be construed as financial, tax, legal or any other professional advice or service. You are advised to consult a financial and/or legal professional advisor from suitably regulated sources.

    Except where noted otherwise, all material in this document is Copyright 2010