With any investment, whether it’s a tech start-up or a pre-construction building project, the potential returns for early investors are the highest. This is, of course, because they also bear the biggest implementation risk. When this risk starts decreasing the entry price for new investors increases.
In the case of our Organic Aloe Vera plantation investment in Colombia, our early investors have seen their project risk diminish significantly thanks to the timely implementation of their hectares. The Aloe Vera plants of our phase 1 investors are already in full growth, while the baby Aloe Vera plants of the phase 2 investors have been planted within the terms of the contract. In fact, our farm management partner, Grupo Gaitán Cuevas, has done everything (and even a bit more than) they said they would do based on their promised timeline.
Now that we’re well into implementation of the project and phase 2 is almost sold out, it’s understandably time for a price increase. The current price per hectare of the Organic Aloe Vera Farm will be raised to US$42,000 in February. While the projected rate of return at this new price will still be excellent, it of course won’t be as good as the current 23% internal rate of return (calculated over 12 years).
However, until the end of the month, you´ll still have the chance to invest in our 100% organic Aloe Vera farm opportunity at the original launch price of US$38,000 per hectare.
For more information please download our brochure or contact us at moc.e1508607307mirpt1508607307al@of1508607307ni1508607307 or +1 806-686-4690 (US).
Aloe Vera Farm Implementation Progress
Eight months ago our phase 2 farm was still a complete greenfield site. Our farming team started by surveying the property using drones to ensure they got the location of the reservoirs, drainage and other infrastructure right. Heavy equipment was brought in to start the clearing work and lay the internal roads across the farm. The water reservoirs and irrigation system were also constructed. While the area in Colombia gets plenty of natural rainfall, a backup option for water supply is very important.
Once the clearing of the land was completed and the necessary farm infrastructure put in place, the planting of the Aloe Vera began. By now many of our phase 2 investors’ hectares have been planted with the Aloe Vera babies. Some of our investors already visited the farm in Cunday to see the progress first-hand (something we highly recommend). The planting of the cleared and organically prepared hectares is continuing at a rapid pace, while additional land is being prepared for future investors. All the progress to date has helped to significantly reduce the implementation risk of any new investors in our Aloe Vera project.
Aloe Vera – A New Success Story
While you may never have considered Aloe Vera as an investment opportunity, it is actually one of the best agricultural opportunities available in the market today.
Future Market Insights (FMI) has reported that Aloe Vera is becoming more and more essential to pharmaceuticals, cosmetics, and food. Globally the 2016 market volume is set to be greater than 60,720.4 tons, which holds a value of $1.6 billion in US currency. That trend is expected to continue from year to year over the next decade resulting in a $3.3 billion market in 2026. The largest aloe sector is cosmetics which is projected to account for 45% of the global market in 2016, a 6% increase over last year.
Aloe Vera contains more than 75 nutrients that make it a high-performing natural ingredient for beauty products. The plant produces a clear gel that serves as a salve for infections, wounds, and burns. Aloe also contains various antioxidants including vitamins C and E. It hydrates the skin, and, with repeated application, is thought to improve skin´s elasticity and firmness. This also makes Aloe Vera useful in beauty products. It acts as a natural moisturizer, oxygenates the skin, and strengthens the skin from the inside out. Other applications of Aloe Vera include arthritis, rheumatism, and digestive remedies.
In addition, Organic produce in general is one of the fastest-growing industries. Consumers are happy to pay more for produce that hasn’t been tainted by chemicals in the growing or transportation process. All of this makes 100% Organic Aloe Vera one of top agro products for years to come, and a great investment opportunity as well.
The Investment Opportunity: Invest US$38,000 For 23% IRR
Basically a one-off investment of US$38,000 buys you 1 hectare of productive Aloe Vera farmland. This includes all costs, including closing costs associated with titling the individual parcels to you, the planting of your Aloe Vera babies and the harvesting of your crop. No additional payments are to be made at any later stage!
From year 3, your now fully grown Aloe Vera plants will start yielding returns of a bit more than US$11,000 per year. That return increases about 3% each year in the projections based on expected increases in the market price for the harvests. In total, this works out to an internal rate of return (IRR) of 23% over a 12-year period (the normal lifespan of an Aloe Vera plant).
Please note though that while financial projections are calculated over a period of 12 years, only a few months are needed to clear the land and replant it for the next production cycle. This means your land can generate revenue for generations to come, thus giving you the opportunity to create financial benefits for your children, grandchildren, or chosen charity.
Phase 1 of the plantation was sold out six months ago and phase 2 is selling at a rapid rate. With implementation now well under way, and the risk decreased, the planned price increase has been set for February.
Hence, please contact us if you would still like to come in at the phase 2 price or if you would like more information.
We also recommend that you buy what you see … meaning you should, if you can, come see this Organic Aloe Vera plantation for yourself. We are offering regular tours of the farm which are both educational and fun. And, of course, this allows you to see a bit more of what the wonderful country of Colombia has to offer. Contact us for more information.
Of course, no investment comes without risk. However, many of the potential risks for a project like this are mitigated in our case.
One key risk in any farming or building project is implementation, especially for the initial investors. With the Aloe Vera plants on our phase 1 farm in full bloom and the organic land preparation and planting on our phase 2 farm well underway, this risk has already been reduced significantly. You can therefore have a higher level of confidence that your hectare will be planted according to the timeline set out in our contract.
Development risk is low due to the vast experience of our farm management partner. We’re talking about three decades of engineering experience along with the proper training and accreditations, such as ISO 9001 quality certification.
Sales risk is also low because your farm management partner and developer are in contract with you to repurchase all of your Aloe Vera produce at market value for use in their own Aloe Vera processing plant. While this is usually a major concern in agricultural endeavours, the purchase of your final products is guaranteed.
Weather risk is minimal in Colombia because the country is not known for natural disasters. Hurricanes and tornados have no bearing on the area, and the occasional earthquake will not affect the crop.
A primary risk for any agricultural investment is drought. The Bogota area, where your farm is located, is known to get plenty of rain. However, global weather patterns are changing and so an extra precautionary step has been taken to have an alternative water source. We have implemented reservoirs to withstand drought and anti-flooding paths to distribute excess water properly. When cared for correctly, Aloe Vera actually requires surprisingly little water due to its being in the succulent family of plants.
So, not only is agriculture a good investment for a fluctuating economy, it is also one of the best risk-adjusted investments. And because you as investor own the land, it is also a hard asset for you to keep or sell.
Since the plantation is already functioning under the control of our farm management partner, there is little fulfilment risk. The land is already in their possession and waiting for an investor t
o buy. A team of farmers is already in place to manage the land and enough baby plants are in the nursery for the next round of planting to begin.
Therefore, the only remaining risks are crop risks. This, too, is mitigated by the fact that the developer will replant any Aloe Vera plants that do not survive for any reason.
A further mitigation is the fact that Aloe Vera is considered a succulent plant. This type of plant has a shallow root system that absorbs water quickly. The water is then stored in the plant, making it a robust and easy-to-maintain crop. Succulents are hardy and have a unique ability to repair themselves. An internal gel seals off any wounds or cuts the plant suffers. The leaf then continues to grow regardless of the damage.
Time to Act
Agriculture clearly offers investors a tremendous potential cash yield. The usual downside is that you’d need to set up your own plantation, and let´s face it, not many of us have those skills.
However, with this investment opportunity you take over ownership of land, infrastructure, and plants that are already in place, and experienced farmers are taking care of the crop for you.
If you’re interested in an agricultural investment with a projected IRR of 23% and if you like the idea of Aloe Vera in Colombia, now is the time to take action. The last reservation at the launch price of US$38,000 will be taken until January 31st. As of February, the price per hectare will increase to US$42,000.
For more information, please download our brochure or get in touch with us at moc.e1508607307mirpt1508607307al@of1508607307ni1508607307 or +1 806-686-4690 (US).
Your LatAm Prime Team