Land can be purchased using personal or pension funds via a SIPP (Self Invested Personal Pension), with the land being re-purchased in 5 years or 10 years, as the investor chooses.
FWE is an Argentinian public company with very large land holdings in northern Argentina. It is raising funds to bring marginal land under cultivation, and to finance farm machinery – increasing food production and providing employment in one of Argentina’s underdeveloped regions.
By traditional standards FWE is raising funds expensively. But in fact within Argentina interest rates are high and investment capital has virtually dried up. Thus the sale of land to international Investors in this fashion, despite the high investment returns, is their best form of finance, that can easily be met from land already in cultivation.
Investment Return (5 year ownership)
Years 1-2 9%
Year 3 10%
Year 4 11%
Year 5 12%
FWE makes a final payment at the end of the 5 years of the original investment plus 15%
Investment Return (10 year ownership)
Years 1 & 2 10%
Year 3 & 4 11%
Year 5 & 6 12%
Year 7 & 8 13%
Years 9 & 10 14%
FWE makes a final payment at the end of the 10 years of the original investment plus 40%.
The Investor purchases a defined area of land at a discount of one third of it’s value using a very conservative, transparent method of land valuation.
Re – Purchase (Guaranteed Exit Strategy)
FWE then offers to re-purchase the land either after 5 or 10 years as the Investor chooses, by means of making an annual payment each year, followed by a large final payment.
Sustainability of the Investment
Farmland in Northern Argentina, traditionally the granary of the world, is highly fertile, producing two crops per year, and it is only around 30% of the price of UK farmland. Investment returns are generated from one of the crops, leaving the second crop to produce revenue for FWE. The world is consuming more food year on year resulting in a growing need for the crops produced.
Investors may sell their land, including the rights to the annual and final payments, at any time to third parties.