Fellow Funders knows that profitable investments always pay off when made in a rational and diversified way. For this reason, we would like to introduce you to a new project of an “old acquaintance” on our platform. A project characterized by triple-A: ” agriculture, Alboris, and almonds.
Alboris: one of our first rounds
Fellow Funders returns to the agro sector alongside Alboris Mancha. Back in 2018, in one of our first funding rounds, we partnered with Alboris to raise over €100,000 to plant olive trees (which fruits are expected in 2022) through a special-purpose vehicle.
More than three years later, Alboris Mancha returns to our platform with a much more ambitious proposal and a fundraising target of almost half a million euros. However, the profit generation formula remains unchanged. Since 2018, our investor community has grown exponentially. For this reason, we must explain how the project works.
This project is different from most of the others on our platform. Thanks to the initial investment, Alboris Mancha has created a vehicle company to acquire thirteen hectares in Pedro Muñoz (Ciudad Real) to cultivate organic almond trees. Meanwhile, investors become partners in this new company.
However, how likely is it to get returns on our investment? Contrary to some startups, Agroalmendros Eco pays off (literally) in an almost guaranteed way. Its profitability does not depend on a probable exit but on the distribution of the dividends resulting from the sale of almonds.
The company will plant Penta almond trees under a super-intensive cultivation regime: an essential factor in the payback periods. Under this super-intensive cultivation model, based on a narrowing of the planting frames and a higher density of plants per hectare, the almond trees are expected to bear fruit (partially) as early as 2025 and at full capacity in 2026.
Almonds tend to have a low price fluctuation (around eight euros per kilogram). Therefore, investors can expect an annual return of 7.8% of their investment (after taxes) for each year of full yield harvests. In addition, the company will have insurance to anticipate possible reductions or losses due to inclement weather or other risks inherent to the agricultural sector.
A decade of profits
According to conservative estimates, investors will thus be able to accumulate returns over the initial investment by 2034. Therefore, the income from the next decade’s harvests would be profitable. After this period, the contract between the company and Alboris will expire in 2045. Two options will appear on the horizon. First, sell the land for a price that is expected to be higher than the purchase price. Second, continue with crops that will continue to bring annual profits to the investors.
With an approximate IRR of 8 %, Agroalmendros Eco is an attractive option for investors who want to bet on a project that, once matured, bears fruit in the form of dividends. It is also attractive for rural society and the environment. The company will focus on the cultivation of organic almond trees.
What does this mean? Organic production is an agricultural management system that responds to the customers’ preferences who demand products obtained from natural substances and processes, i.e., free of chemical synthesis products. In addition to producing tastier and healthier food, this type of agriculture is aligned with our commitment to ESG values and sustainability in business.
Regarding the almond market, Spain is the second country worldwide in almond production, only behind the United States. For its part, Castilla-La Mancha is the second region with the highest production of this fruit in our country, surpassed only by Andalusia. Therefore, one can say that Agroalmendros Eco’s activity is framed in one of the principal world centers of almond production. The growing demand for almonds and agricultural products, in general, suggests that the context is propitious for Alboris Mancha to sell its almonds successfully in the markets.
Invest in Agro Almendros Eco!
Fellow Funders already knows the Alboris Mancha team and its expertise in the agro sector. Thanks to our previous round with them, we also have first-hand knowledge of how this agricultural investment works. For this reason, when we were presented with this investment opportunity, we knew we wanted to offer it to our community. Do you want to invest in Agroalmendros Eco? Let us know in this form!