Savills has been instructed to sell close to 1 million acres of land in Argentina. Situated in the San Juan province in the north west of Argentina, Estancia Punta del Agua totals approximately 989,000 acres in a single location to the north west of San Juan city.
The land is being marketed through Savills and joint agents Gateway to South America based in Buenos Aires, on behalf of a multi-national family who have owned the land since the 1980’s and now wish to concentrate on other projects.
Ken Jones, head of international farmland for Savills says “This is probably the largest ring fenced freehold block of land to be offered for sale in the open market ever. Given the current interest in farmland from international investors, we expect the Estancia to appeal to a number of potential purchasers. With soil reports showing vast areas of silt soils, and the potential of tapping into one of the largest aquifers in Argentina, the Estancia needs an investor who understands agriculture and has the capital to invest after the purchase in a scheme of works to bring the land into line with 21st century farming techniques. We feel, once implemented, not only will the owner have one of the largest farms in the world, but also will have added value far beyond the cost of the scheme.”
Joint agent Geoffrey McRae of Gateway to South America adds; “The Estancia was a productive farming estate until the 1950’s when lack of infrastructure meant that the province of San Juan became less competitive in comparison to the more strategically located provinces like Mendoza and La Pampa. In recent years, a strategic alliance between the countries of Chile, Argentina, Uruguay and Brazil has meant significant investment in, amongst others, a road network connecting major ports on the Atlantic and Pacific oceans. Part of this network of road runs the full width of the Estancia meaning produce can be transported from the land with ease. Investment in the 132kv grid network means that the Estancia will also benefit from a modern, reliable electricity supply.”
The Estancia totals approximately 989,000 acres and is available as a whole by Private Treaty.
Source: http://www.landgazette.co.uk/index.php/rural-agency-/935-largest-block
DGC Asset Management Limited provide Investors with the opportunity to engage in strategic mid term and long term asset-backed investments within the Agricultural, Timber and Renewable Energy sectors.
Showing posts with label argentina. Show all posts
Showing posts with label argentina. Show all posts
Friday, 17 June 2011
Chinese agro firm make $1.5b agriculture investment in Argentina
Beidahuang Group, a company based in Northeast China's Heilongjiang province, expressed its intention to invest in an agricultural cooperation project with Argentina’s Rio Negro Province, ce.cn reported Monday, quoting media reports in Argentina.
The Chinese company will invest $1.5 billion over 20 years to grow farm produce, including soybeans and corn, and export those crops back to China. The project will use advanced irrigation facilities to develop 300,000 hectares of arable lands for agriculture use, and construct supporting power generators and port expansions.
This project, expected to start this year, will be the first investment in Argentina’s agriculture by Chinese companies, according to the media.
The Chinese company will invest $1.5 billion over 20 years to grow farm produce, including soybeans and corn, and export those crops back to China. The project will use advanced irrigation facilities to develop 300,000 hectares of arable lands for agriculture use, and construct supporting power generators and port expansions.
This project, expected to start this year, will be the first investment in Argentina’s agriculture by Chinese companies, according to the media.
Wednesday, 11 May 2011
Farmland Investment: Argentina Land Limits Won't Affect Output
Download your FREE Agriculture Investment and Farmland Investment Guide here
Argentina's drive to limit land purchases by foreigners is deepening concerns about its investment climate, but is not expected to cause major changes to who owns some of the world's most productive farmland.
President Cristina Fernandez wants to cap individual foreign purchases at 1,000 hectares (2,471 acres) although the proposal, unveiled six months before a presidential election, appears to be more about winning votes than curbing foreign investment.
Argentina, a leading supplier of soy, corn and wheat, joins governments in neighboring Brazil and Uruguay in moving to protect their fertile lands as global food prices soar, turning agricultural land into a prized commodity.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Many Argentine farmers, at odds with the government for years over interventionist policies such as export limits, have welcomed Fernandez's land purchase bill and the measure is expected to easily pass Congress this year.
But industry analysts say it could be another red flag to international investors just as traditional pre-election jitters slow capital inflows to Latin America's No. 3 economy.
"Foreign investment in 2011 is already being very cautious simply because there's an election coming," said Jimena Blanco, an analyst at Latin American Newsletters, based in Britain.
Download your FREE Agriculture Investment and Farmland Investment Guide here
"This proposal is really more of a political move than an actual affront on foreign capital or foreign ownership of land," she said, adding that many of the foreign agricultural producers operating in Argentina lease rather than buy land.
While the exact impact of the land bill remains unclear, real estate brokers are concerned, with some urging clients to close deals before it makes it onto the statutes.
In neighboring Brazil, at least $15 billion of foreign investment in land has been halted since the reinterpretation of local real estate laws last year, according to two local agricultural analyst groups.
The Brazilian reform limits foreign purchases to between 250 hectares and 5,000 hectares, depending on the region.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Uruguay has been a magnet for foreign land buyers in recent years, prompting President Jose Mujica to ask lawmakers last year to consider steps to halt the sale of land to foreigners.
As part of Argentina's proposal, a census will be undertaken to see exactly who owns what.
Fernandez said her government aims to limit foreign holdings to 20 percent of total rural lands, but it is not clear how much foreigners currently own or how much they are buying at the moment.
Claudio Mejia, a partner at Compania Argentina de Tierras -- a Buenos Aires-based land brokerage -- said foreigners seeking land have never accounted for more than 12 percent of his clients.
Download your FREE Agriculture Investment and Farmland Investment Guide here
"People are waiting to see what will happen, but we haven't had any case of anyone who was about to buy backing out because of this," he said.
LAND PRICES RISE
Several foreign investors have large land holdings in Argentina, particularly in the southern Patagonia region, but these tracts are generally not used for mass food production.
Argentina is the world's third-biggest soybean producer and No. 2 corn exporter.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Soy products account for more than a quarter of total exports and heavy export taxes mean the oilseed is an important source of state revenue.
Aside from being a top global grains supplier, Argentina is renowned for its succulent beef. High grains prices in recent years have pushed ranching into more marginal areas as farmers turn over lands suitable for agriculture to soybeans.
In some areas, land prices have risen sharply since the country's 2001/02 economic crisis to about $15,000 per hectare, according to Mejia's brokerage.
The price of the most fertile Pampas lands has soared, leading to greater land concentration by larger agricultural companies as well as the growth of so-called "sowing pools," investment funds that rent fields and hire farm managers to cultivate crops on their behalf.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Stefano Pallozzi, a Miami-based farmland broker who does business in Argentina, said the proposed 1,000-hectare limit would hurt investment simply because foreign buyers generally look for more profitable, larger tracts of land.
"In the row-crop business, extensive cultivation systems or even a cow-calf operation, a surface of 1,000 hectares is no longer attractive to anyone -- even less to someone diverting resources from overseas," he said.
Pallozzi said he is hurrying his clients to close pending deals before the bill becomes law.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Agriculture Minister Julian Dominguez has said the reform would be good news for overseas agricultural investors by assuring them "a clear legal framework."
But some industry players are skeptical, fearing the bill could be used as a tool to further control agriculture.
"It's clear that it would discourage investment," said Fernando Botta, an analyst with agricultural consultancy and grains trading firm AgroBrokers in Rosario.
"When these types of laws are generated ... there is the possibility that the state will have an excuse to increase its interventions," he said.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Source:
Argentina's drive to limit land purchases by foreigners is deepening concerns about its investment climate, but is not expected to cause major changes to who owns some of the world's most productive farmland.
President Cristina Fernandez wants to cap individual foreign purchases at 1,000 hectares (2,471 acres) although the proposal, unveiled six months before a presidential election, appears to be more about winning votes than curbing foreign investment.
Argentina, a leading supplier of soy, corn and wheat, joins governments in neighboring Brazil and Uruguay in moving to protect their fertile lands as global food prices soar, turning agricultural land into a prized commodity.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Many Argentine farmers, at odds with the government for years over interventionist policies such as export limits, have welcomed Fernandez's land purchase bill and the measure is expected to easily pass Congress this year.
But industry analysts say it could be another red flag to international investors just as traditional pre-election jitters slow capital inflows to Latin America's No. 3 economy.
"Foreign investment in 2011 is already being very cautious simply because there's an election coming," said Jimena Blanco, an analyst at Latin American Newsletters, based in Britain.
Download your FREE Agriculture Investment and Farmland Investment Guide here
"This proposal is really more of a political move than an actual affront on foreign capital or foreign ownership of land," she said, adding that many of the foreign agricultural producers operating in Argentina lease rather than buy land.
While the exact impact of the land bill remains unclear, real estate brokers are concerned, with some urging clients to close deals before it makes it onto the statutes.
In neighboring Brazil, at least $15 billion of foreign investment in land has been halted since the reinterpretation of local real estate laws last year, according to two local agricultural analyst groups.
The Brazilian reform limits foreign purchases to between 250 hectares and 5,000 hectares, depending on the region.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Uruguay has been a magnet for foreign land buyers in recent years, prompting President Jose Mujica to ask lawmakers last year to consider steps to halt the sale of land to foreigners.
As part of Argentina's proposal, a census will be undertaken to see exactly who owns what.
Fernandez said her government aims to limit foreign holdings to 20 percent of total rural lands, but it is not clear how much foreigners currently own or how much they are buying at the moment.
Claudio Mejia, a partner at Compania Argentina de Tierras -- a Buenos Aires-based land brokerage -- said foreigners seeking land have never accounted for more than 12 percent of his clients.
Download your FREE Agriculture Investment and Farmland Investment Guide here
"People are waiting to see what will happen, but we haven't had any case of anyone who was about to buy backing out because of this," he said.
LAND PRICES RISE
Several foreign investors have large land holdings in Argentina, particularly in the southern Patagonia region, but these tracts are generally not used for mass food production.
Argentina is the world's third-biggest soybean producer and No. 2 corn exporter.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Soy products account for more than a quarter of total exports and heavy export taxes mean the oilseed is an important source of state revenue.
Aside from being a top global grains supplier, Argentina is renowned for its succulent beef. High grains prices in recent years have pushed ranching into more marginal areas as farmers turn over lands suitable for agriculture to soybeans.
In some areas, land prices have risen sharply since the country's 2001/02 economic crisis to about $15,000 per hectare, according to Mejia's brokerage.
The price of the most fertile Pampas lands has soared, leading to greater land concentration by larger agricultural companies as well as the growth of so-called "sowing pools," investment funds that rent fields and hire farm managers to cultivate crops on their behalf.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Stefano Pallozzi, a Miami-based farmland broker who does business in Argentina, said the proposed 1,000-hectare limit would hurt investment simply because foreign buyers generally look for more profitable, larger tracts of land.
"In the row-crop business, extensive cultivation systems or even a cow-calf operation, a surface of 1,000 hectares is no longer attractive to anyone -- even less to someone diverting resources from overseas," he said.
Pallozzi said he is hurrying his clients to close pending deals before the bill becomes law.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Agriculture Minister Julian Dominguez has said the reform would be good news for overseas agricultural investors by assuring them "a clear legal framework."
But some industry players are skeptical, fearing the bill could be used as a tool to further control agriculture.
"It's clear that it would discourage investment," said Fernando Botta, an analyst with agricultural consultancy and grains trading firm AgroBrokers in Rosario.
"When these types of laws are generated ... there is the possibility that the state will have an excuse to increase its interventions," he said.
Download your FREE Agriculture Investment and Farmland Investment Guide here
Source:
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