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Key selling points
- Only £20,000 per investment
- Annual returns start at 10% of initial investment
- Invest with Euros, US Dollars or GB Pounds
Only £20,000 per investment
We're offering a unique opportunity to invest in new arable farmland in the North West Region of Argentina. The annual returns paid to investors, net of all costs and fees, start at 10% of the initial investment, rising annually by one percent each year to a maximum of 20%. Investors can exit after four, eight or twelve years, with up to 80% capital appreciation.
Why invest in new arable land?
There is a shared agreement amongst investment experts that new arable land is a superb investment for a simple reason. As people in China, India and elsewhere grow richer, their demand for more food increases and one kilo of meat requires around eight kilos of grain to feed the animal. As crop demand and prices rise, so does the value of the land on which the crops are grown. The global demand for soft commodities will only increase.
Also, rising oil prices and global warming are forcing countries to urgently develop other sources of energy and the most efficient way to do this is to obtain it from renewable products like Soy, Corn and Sunflower. These commodities are all proven to be excellent generators of Bio-fuels and other alcohols.
The investment opportunity
The minimum investment at any one time is £20,000. The maximum is £1 million or larger by special arrangement. Investments of £100,000 or more will receive a greater annual rental income.
Invest in Euros, Dollars or GB Pounds
Clients can invest using either Euros, US Dollars or GB Pounds. Returns will also be paid in the selected currency. For example, if you choose to invest in GB Pounds your returns will be paid in GB Pounds.
The returns
The investor will receive a rental income starting at 10% per annum of the investment. The rental income will increase every year to a maximum of 20% per annum. The longer the investor stays in, the higher the annual income they receive. The annual income from rent is paid net of all fees and local taxes.
As a percentage of the Contribution the annual income is as follows;
>10% in year one
>11% in year two
>12% in year three
>13% in year four
>16% in year five
>17% in year six
>18% in year seven
>19% in year eight
For years 9, 10, 11 and 12, Investors will receive 50% of the value of the annual harvest with a minimum percentage of 20% of the Contribution.
Prospective capital growth
Investors can completely exit after 8 or 12 years, and may also sell half of their holding after four years. At 8 or 12 years, they will receive up to the market value of the land, which is likely to rise rapidly, with a guarantee of 60% capital gain in 8 years and 80% in 12 years. This is in addition to the rental income the investor has already received.
*Please note the annual return is net of Argentine tax, but it is the responsibility of the investor to declare this to the Inland Revenue.
What is the risk factor?
The fixed rate annual income returns and capital appreciation are based on the contractual agreement with the agricultural operating company. If they could not fulfil their contractual obligations another operator would need to be found though this should not be difficult with agriculture having such favourable prospects.
Are There Any Other Costs?
There are no administration fees and returns are paid net of all local taxes so you will receive the full stated return minus a bank charge of £50 for paying your annual returns to the bank account of your choice. Please note it is the responsibility of the investor to declare to the Inland Revenue.
Exit Possibilities
Through the agricultural operating company you have the option to redeem half of your investment after four years, and the investment in its entirety after eight years. Private sales as also permitted at any time.
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