An experienced astute agribusiness-man with a well developed business model who requires Au$500K equity injection to in-act a plan to purchase multiple profitable commercial business assets up to a total value of 100M. Exit in 3-5 years via valuation in the interim a return of 100% pa on the 500K is expected and 49% of asset value gain at exit.
XXX Aginvest creates sound and profitable investment using a combination of solid agricultural land and water assets and commercial property opportunities, combined with water trading to return in excess of 24% per annum before tax.
A specific company will be formed to operate in Australia for this opportunity. Exit strategies with investors will be determined before investment to ensure all parties are content with their investment. These strategies could be stay long term and take profits including capital gains; sell shares or part shares at pre-determined times; or sell the total assets at a pre-determined time and close the company.
XXX Aginvest seeks $100 Million of equity or debt in tranches to commence their operations where:
95% will be invested into land and water assets with direct leaseback to farmers and commercial properties managed by the company with a small amount for working capital
5% will be utilised to purchase unencumbered water rights for trading opportunities and carbon trading opportunities
In this way XXX Aginvest builds a sustainable land and water base of high quality assets with a better than average capital growth, supported with sustainable leases paid 3 months in advance, with a guarantee of lease payment for the following term at all times. This frees up capital for the lessee, allowing them to continue their farming operations without asset driven debt, which results in greater inputs into the production business. This in turn ensures the lease is paid to XXX Aginvest and acts along the lines of insurance where the asset will be well looked after. Further, the opportunity exists for easy succession or for young and new farmers to enter the industry.
The model is a combination of long term assets being land and water with yearly lease returns, and commercial properties, with potential for greater access and control to commodities, and short term income from the trading of water. Results will be as follows:
Sustainable lease income rural from 6 to 12% per annum before tax
Sustainable lease income commercial from 8 to 15%
Capital growth ranging from 8 to 16% (based on historical averages) with a high probability of enhancement
Water trading returns of 12 to 20% per annum before tax