LATAMFARMS 001 L.P. PARAGUAYAN CHACO
Latam Farms 001 LP is a fund focused on farmland transformation in Paraguay, the ultimate agriculture frontier in South America. The fund provides investors an opportunity to invest in real, tangible agriculture assets that offer a diversified source of income and capital appreciation, by turning unproductive land into high-quality grassland suitable for cattle raising in one of the most competitive beef exporting countries in the world.
The Project is based on the acquisition of three undeveloped farms located in the Chaco Paraguayo (total area of 8.000 hectares). The purchase is done at very competitive prices that range between USD 300 to USD 400 per hectare.
The goal is to develop the farms by clearing and fencing, installing water infrastructure, planting high protein pastures, acquiring and raising cattle and completing other developments required to bring the farms up to a commercial production condition to realize their full potential value. Once completed the development process in the fifth year, the farms will be sold with expectation of duplicating the original investment, delivering an expected 15% IRR in US$ to the investor.
The entire project is developed through a Limited Partnership established in Canada, which serves as the investment vehicle for investors.
VALUE CREATION - ATTRACTIVE RETURN ON CAPITAL:
- Total investment: US$ 7.0 MM
- Average full land acquisition price: US$ 350/Ha
- Land improvement capex: US$ 500/Ha
- Expected holding time frame: target 7 years
- Expected land exit price in 1.000: US$ 1.200/Ha
- Expected LP IRR: 15%
LATAMFARMS 001 LP DEVELOPMENT STATUS AS OF JULY 2018:
- The Fund has already secured the targeted 8,000 has of native land for the Series 001 LP:
- Farm 8 (2.000 hectares) Deeded
- Farm 7 (2.000 hectares) Private purchase agreement signed and Latam Farms already has the farm possession.
- Farm 34 (4.000 hectares) Deeded
- We are working on the clearing and sowing of pastures.
- International roads to separate plots according to the final use of plots is being done.
- Work on water storage and distribution, has started