Why farmland
in Spain & Portugal?
Investing in real assets, and specifically in farmland, can be really profitable. As with any investment, there are multiple alternatives, each with a different risk and return profile.
In exchange for relative illiquidity, it is presented as a source of attractive returns, totally uncorrelated, stable and predictable in the long term.
In agriculture, risks such as weather or diseases must be managed to minimize the possible negative impact. The key is the experience of agricultural managers, their ability to manage these risks, as well as the selection of the ideal location and variety of crops and their proper management.
But we have to keep in mind that we are managing a living being, the Soil, the source of that return, so we better take good care of it.
Guaranteed Demand
Real Assets
. With attractive and predictable returns
. Inflation hedge features
Spain & Portugal, The Hot Spot
. Leaders in agricultural production
. Solid Agri-food Value Chain
The Investment Opportunity
+ Land property highly atomized
+ No critical mass to achieve economies of scale, low rentability => unable to generate excess returns to reinvest and modernize operations => lack of competitivity
= Possibility to acquire or rent “sub-optimally managed” Farms with large revaluation potential at reasonable prices