Equity Investment

Agroalmendros ECO

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Project Description 

Agroinversiones Mancha Almendrus, S.L. (hereinafter Alboris Almendrus) aims to raise financing for the purchase of a 13 hectares farm in the Pedro Muñoz area (Ciudad Real, Spain). This farm will be dedicated to cultivating Penta variety organic almond trees in super-intensive mode. Alboris Mancha S.L., a company with extensive experience in organic crops (quinoa, almonds, olive vines) will entirely manage this plantation. To this end, Alboris Mancha will charge a 10% commission on the gross margin of the harvest as a management fee.

Any user who decides to invest in Alboris Almendrus will automatically become a partner/participant of the company, obtaining the right to collect an annual dividend from the plantation's results. The user should be aware that the plantation is insured with Agroseguro against unforeseen events that could damage the crop.

The investor should conceive this project as a fixed income product that yields an IRR of 8.11%. It is designed for those investors who, on the one hand, are not satisfied with the yields that risk-free investments offer nowadays (deposits, government bonds) but who also refuse to assume the risk involved in the variable income market (shares, commodities). Compared to equity investments, this option offers both low risk and an attractive return for savings on which we want to obtain favorable long-term returns. For example, an increasing number of funds and institutional investors are entering this market, as we can see in the following article: 

 

* In 2021, dividends will only be 50% as the plantation is not a yield.

 

Project risks

Planting involves several risks that directly affect both the quality of the product and the quantity of production:

  • Late spring frosts: the Penta variety of almond trees is an extra-late flowering variety, making it resistant to possible late spring frosts.
  • Poor pollination: the Penta variety almond tree is a self-fertile variety. No insects are needed for pollination.
  • Pests and diseases: the Penta variety of almond trees shows good resistance to diseases. On the other hand, since it does not depend on insects for pollination, pests are less expected. Fumigation would be a perfect option to mitigate this risk, always using accepted organic products by the competent authority.
  • Non-availability of water: the acquired land has access to a sufficient subway water supply to supply the plantation. Moreover, the land is located close to a river. For its part, the company will always try to carry out efficient water management.

To reduce the risks that may affect the plantation (or even eliminate them), Alboris Almendrus will contract a crop insurance policy with Agroseguro to ensure a minimum income per year, depending on the characteristics of the policy contracted.

 

What are the funds needed for?

The €464,000 that this round is seeking will be invested in the following areas:

- €239,000 to purchase the 13-hectare farm.

- €97,800 to prepare the land and reserve the necessary material. 

- €95,000 to carry out the planting and installation of the irrigation system. 

- €32,200 to maintain the farm and the plantation during the first 2 years when no harvesting will take place.  

 

What does this project offer?

This project grants investors access to a sector that, until now, was out of their reach due to the high acquisition and management costs of a farm of these characteristics.

The project consists of producing organic almonds in super-intensive mode to be sold (B2B) either for packaging and sale to the final consumer or for processing and application in the food industry. The project combines the global boom in organic crops and the sale of a product for which demand generally exceeds supply, guaranteeing very attractive sales prices. 

The idea behind the contract is to bind both companies (Alboris Almendrus and Alboris Mancha) for the next 22 years (2022-2044), offering two possibilities at the end of the contract:

To sell the farm, thus opening a liquidity window for the investor. The investor could sell the farm at a higher price than the acquisition price and a foreseeable revaluation of the value of the land destined for cultivation. This situation is due to inflation and the increasing interest in acquiring this type of land as an alternative investment. It is worth noting that at that time the farm will be operating at full capacity. Therefore, if we also consider the effect of inflation, we can determine that this price is reasonable and even conservative.

To extend the agreement between both companies so that Alboris Mancha continues to operate and manage the plantation, allowing the investor to continue receiving an annual return thanks to the harvest results.

 

Reasons to invest

  1. Direct investment opportunity in the agricultural sector, preventing complex structures or inefficient funds.
  2. Real and sustainable asset investment, de-correlated from the financial markets.
  3. Investment in a newly created company, guaranteeing the investor a tax saving of 30% on the amount invested in the IRPF quota.
  4. Appreciation in cash flow and land value over time.
  5. Highly profitable crop type and variety compared to others.
  6. Highly experienced team and company within the sector and these types of operations.
  7. High demand for organic products. Almond demand is generally higher than supply.

 

 


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Details of the investment

Project with tax incentives Fellow funders invests in this project
99%

Objective Assessment Report  

Objective Assessment Report

This report is worth 99 euros

Objective 464.000 €
Raised 460.500 €
Investors
Minimum ticket 1.000 €
Shareholding price
Pre-Money
% Equity
Scoring
Partners agreement
Payback
Tax incentives
Information guaranteed
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