Low-risk asset with high return
Your own organically managed plantation
Private investors normally find it difficult to acquire smaller farmland as a capital investment; typically, agricultural investments are in the seven-digit $-range.
Our investment model therefore offers you the opportunity to buy agricultural land as a capital investment for less than US $50,000 per hectare.
As an investor, you acquire first-class agricultural farmland in Panama, which the local operating company organically manages for you and markets its crop worldwide. –
A turnkey investment!
Your return is 70% of the net profit of the annual crop over the entire lifetime of the plantation, i.e. for at least 60-80 years!
The forecast IRR (Internal Rate of Return) over a period of 30 years is 17-18%.
However, you not only profit from the crop revenues, but also from the long-term increase in value of your land – in Panama currently 10% p.a.
In between the last five years more than 2,000 plantations were already sold!
Agricultural land as an investment
Climate change, a growing world population and soil erosion and sealing are increasing the demand for fertile farmland worldwide. In addition, there is a growing consumer demand for agricultural products from sustainable agriculture and investors’ desire for alternative investment opportunities.
Agricultural land as an investment has proven itself: the annual increase in value over the past 30 years has averaged 3.5% worldwide (currently 10% in Panama) with very low volatility. The increase in yield through organic cultivation is not taken into account: it is approx. 35% higher than for conventional cultivation with chemical fertilisation.
The investment company
The investment company is the largest operator of organic agricultural land in Latin America and, among other things, Peru’s largest coffee and avocado exporter. Other business activities take place in the USA, Colombia, Mexico, Costa Rica, Holland and Israel. The organically produced and distributed products also end up on European supermarket shelves, but mainly in the USA.
The local partner company, which is responsible for the operative business, has a professional and experienced management and has been active in organic farming in Panama on a large scale for four generations.
All plantations are certified 100% organic by the USDA (US Department of Agriculture).
The high-tech irrigation system, which was installed last year, was developed in collaboration with Israel and is currently the most advanced in the world. The greenhouses cover an area of ten hectares, including 200,000 mango seedlings, making them the largest in Central America.
“Through scalable expertise in using permaculture practices, which greatly mitigate the use of toxic chemicals, the ability to create bigger and better bounties through natural, and eco-sustainable practices on your land. We choose to be better stewards of the earth’s resources, and the earth pays us dividends. Our fundaments go beyond farming, they are based on sustainability and passing a land-based asset as a legacy to be passed down for generations.”
The benefits of the investment
- Your own organicly managed plantation – a turnkey, generation-spanning investment to expand your portfolio, as an alternative investment or as an (additional) annuity.
- Secure, long-term and low-risk investment with high returns:
Forecasted IRR (Internal Rate of Return) over a period of 30 years of 17-18% (conservatively calculated).
- 35% higher crop yields through organic farming.
- 70% of the net profit of the annual crop remain with you as the investor, 30% with the investment company (win-win situation).
- Annual payment of the return after the first crop (after 4 years) over the entire lifetime of the plantation (at least 60-80 years).
- Return on investment after eight years at the latest.
- Professional and experienced management in organic farming on an industrial scale for four generations.
- Additional increase in the value of the agricultural land regardless of the yield (currently in Panama approx. 10% annually).
- The possibility to sell or inherit the land at any time.
- Tax advantages: no property tax; the tax on capital income in Panama only applies from a gross income of US $350,000 p.a. upwards. In addition, there is no inheritance tax in Panama.
Panama is blessed with geographical, economic and environmental advantages that make the country attractive for investment in agriculture. Panama has strong economic growth (an average of 7% per year, in 2019 8.1%) and legally secured asset protection. The country is not only a popular tourist destination but also the economic and technological center of Latin America. In addition, its logistical infrastructure and economic and social stability make Panama one of the most important investment destinations within the Latin American emerging markets.
Panama has a tropical climate, different microclimates, excellent drinking water reservoirs and rich soils. The country lies outside natural disaster areas – there are no hurricanes, floods or severe earthquakes. Nevertheless, Panama’s agricultural industry is historically underdeveloped: only 4% of its arable land is in production. The country’s economic focus is on finance, transport logistics, tourism and services. For agriculture, this is an interesting market with high growth potential.
Nevertheless, agricultural land is not available indefinitely in Panama either: 30% of the country is a nature reserve and the market for agricultural real estate competes with that for private, commercial and state-owned real estate. The expansion of the Interamericana, the construction of the third bridge over the canal and the planned new railway line across the country will result in a considerable demand for land on the part of the state and will thus also drive up prices for agricultural land.
Purchase options and conditions
- Currently, the sale of organically managed mango and lime plantations (“Fruit Punch Mango” and “Rainforest Lime”) is available.
(The avocado plantations as well as the plantations with a mixed cultivation of bananas, pineapples and plantains have already been sold in a very short time. For the cultivation of these plantations new agricultural land is currently being acquired and developed by the investment company.)
- The sale takes place per hectare, the minimum
purchase size is one hectare.
- The invoicing currency is the US Dollar.
- The buyer can be a private person or a legal entity. You can also set up a Panamanian company (Sociedad Anónima, S.A.) or foundation (Fundación), which can also act as a buyer. The lawyers of the investment company will be happy to advise you.
- You sign two contracts at the time of purchase:
– the actual purchase contract for the purchase of the property with the investment company
– as well as the contract of use with the operating company.
Please note that for tax and legal reasons the use of the land is exclusively intended as agricultural land. The construction of e.g. a residential home – even if it is your land – is prohibited!
La Guardia Publicidad, S.A.
Calle El Hato
1001 El Valle de Antón
República de Panamá
Cel. / Whatsapp: +507-6592 8544
Please use the adjoining contact form for your inquiry.
Thank you very much!