The Proposition
- SardAgro offers to its potential investors the chance to purchase up to 40 acres of land in the Manisa Region of Turkey.
- SardAgro will take on all managerial responsibilities of the investor’s farmland and provide the investor with revenue once per year from harvests.
- The crops are already planted and the plot of land developed with fully operational irrigation systems and electrical grid connection.
- The price of walnuts per kg. is set to appreciate 10% per year.
- The price of the land is set to appreciate 10% per year (a very conservative approach).
- CAGR between 2017-2023 in usd for the vacant land is 22%
- The payback period for the investor (with a hypothetical exit with land appreciation) is 6 years after purchase. The investor will recover his initial investment with the 10th harvest year (excluding land appreciation)
- Discount factor of 8% is used in NPV calculations – Long term yields of treasury bonds and LIBOR swap are around %4. NPVs are positive for 10-20-30 years
- The first profit to be collected by investor is planned to be in the year 2026 – 3rd year of investment.
- The investor will become the title deed owner of the land and may sell the land at any time.
- After the first harvest, the investor will receive all profits from the harvest for always.
- SardAgro will take care of all legal proceedings.
- The investor will be guaranteed the services of SardAgro under an agreement.
The Challenge
Investing into agriculture is a very logical choice for all investors. However, if its unique set of challenges are not tackled appropriately, the venture will become a failure.
- Agricultural investment requires many additional investments such as power, well, the purchase of land and others which can cost over 200.000 USD initially.
- Local contacts are required to secure all the initial equipment and plot of land. High cost of investment and lack of a local network make this venture difficult for outsiders.
- Professional management of the farmland is required in order for the plants to grow and generate profit. Due to the time constraints of many investors, day to day management is a big hurdle.
- Sales channels and networks are required in order to actually turn the harvest into cash which the investor will want.
- Farming comes with many risks that have to be managed. If an investor has no risk control plan, all the efforts and capital might go to waste!
The Solution
SardAgro offers a viable solution to all investors that wish to invest in farmlands!
- We offer fully developed farmlands that are equipped with irrigation channels, 2 year old certificated saplings and access to the local electrical grid.
- A variety of packages are up for offer for our investors, meaning that you may begin investing with minimal capital!
- Our extensive contacts in the banking industry will facilitate the transfer of your funds to wherever you may be!
- We have a dedicated team that takes care 24/7 of your farmland with the help of smart farming technology to ensure a profitable venture.
- We have a dedicated team that takes care 24/7 of your farmland with the help of smart farming technology to ensure a profitable venture.
- We have taken precautions to effectively manage the risks involved in farming!
