- Country: Uruguay
- Industry: Agriculture
- Stage: Start-up
- Investment size: $6,000,000 / min. $1,000,000
- ROI: 15% in 6 years
- Type of investment: Equity
We are inviting investors & companies to enter the Uruguayan market by joining our business in the sectors of agriculture, land leasing, and crops production.
Summary of the proposed investment:
INVESTMENT VEHICLE: contract with the manager of the investment.
TERMS AND CONDITIONS: 5 years, under the Uruguayan laws. Options of renewal.
CURRENCY: contributions and withdrawals in American dollars. Assets in American dollars.
EXPECTED RETURN: 10 to 20% of ROI.
Note: In an average year the ROI is of 15 % to 20 %, for each cycle. However not being an free risk investing, the investors must be know that some times can be lower reaching a null or negative.
WHY INVESTING IN URUGWAY
1. Highest political and social stability in Latin America.
2. Continued economic growth and investment despite the
3. Attractive schemes free zones, free ports and free airport tax exemptions for large investments.
4. There are no tax on exports.
5. Access Mercosur free trade area with a GDP of U.S. $ 2 billion, which also includes Argentina, Brazil and Paraguay.
6. Benefit-cost labor in the region better relationship.
7. Highest Internet penetration, broadband and PC in Latin America.
8. Latin America's most reliable power supply.
9. Port class infrastructure in Montevideo, already a "hub" for regional excellence for the Southern Cone of South America.
10. Pleasant climate and lack of natural disasters; plenty of water.
11. Business costs and lower crime Latin American violence.
Rationale for the deal
The market that our company is directed is to investors or companies wishing to invest in agriculture business.
This country has shown an excellent level of production of agricultural products like soybean, corn, canola, wheat, barley, sorghum, and sunflower. With a high soil quality, the perfect weather, stable economy and government, free moving of capital, high offers of hand job quality and very good modern infrastructure and law system.
There are excellent route connections, from all the country to the exports ports.
In terms of market, most of the production is exported to Asia countries, Brazil, Orient Media and Europe, and a small part of it is sold to local markets.
Use of financing
For the leasing of the farmland, we are offering 6000 hectares, the amount invested will be around USD 3.000.000, on this case the only payment will be for arable land.
The contracts and terms, will generally be from 3 to 5 years of leasing, after this period we have the options of renewal (extension for the same period as before).
Opportunity for the investor
The investment will be focusing on the production of agriculture products, with the two options, farm lands acquired or leasing land.
The investment will be used to acquire the lands either to purchase or rent, and cover all the costs of the production, shown in the excel spreadsheet productions crop. Doing the productions of soybean, corn, sunflower, canola, wheat, barley, oats, sorghum, using as a strategy different geographical
locations of Uruguay.
Technical management will be carried out thought its owner.
Each campaign will be marketed production at the local market first line buyer for its exports and the proceeds will be invest to the next campaign, or available to the investor during possible rescue. In this way the fund will provide annual with an interesting and attractive return profile, risk/benefit.
The volatility of commodity price is mitigated through different hedging strategies and forward sales, climate risk managed through regional diversification of land, and structural insurance crops. The vehicle structured to that end, provides an excellent opportunity for investors who want participate in the upside of the market supply of food and renewable energy,
One of our aims is to make a business where win / win, financially, professionally, be the best company in the market, adapting to the needs and objectives of our investors, to meet the goals together.
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