This investment is only suitable for certified sophisticated investors. Please call our sales team to discuss whether you qualify.
PLANTATION ASSET MANAGEMENT – OFFERING A NEW INVESTMENT AND OWNERSHIP STRUCTURE IN AGRICULTURAL COMMODITIES
A SMOOTH PATH TO PALM OIL DEVELOPMENT
Fixed Income – Low Risk – Secure – Guaranteed exit opportunity after 5 years
PARTICIPATE IN AFRICA’S GROWTH STORY THAT ALLOWS LOCAL COMMUNITIES TO KEEP CONTROL
“West Africa is reckoned to be home to nearly 8m ha of oil palm, but most of this is unimproved low yielding stock. The opportunity to redevelop vast tracts of neglected plantations in Africa is fuelling a potentially enormous investment drive in the region”: Global Palm Oil Sector Monthly (December 2011), Hardman & Co., London.
Capital Growth + Fixed Income + Direct Ownership + Government Approval
Plantation Asset Management is pleased to offer a clear and simple way to participate in what is now being described as the biggest ‘growth story’ in West Africa – palm oil.
Furthermore it is offered with a high degree of security and simplicity. You will own a fixed acreage of land pre-let to an experienced selected operator in return for fixed annual rents, so you will not participate in the cultivation and yield risks.
Your income and capital value will be underwritten by the plantation operator and tenant – West African Palm Oil Limited – who will pay a rent equivalent to 12.5% gross of your capital outlay in year 1, rising by 5% a year thereafter.
You will own a 25-year lease on the land – obtained via African Land, a company which already operates extensive commercial farming interests across Sierra Leone and Liberia, and which has the full approval and confidence of the local tribal owners. African Land has proved in its rice farming project (which now covers over 3,000 acres) that it brings real benefits and development to local communities.
You can visit the project and see the benefits for yourself, as well as inspect progress in your investment. And we offer free inspections if you invest £30,000 or more.
This project is a real partnership between the local community, the management and the investor, in a country wanting to bring major improvements to agriculture and rural lives.
The approved tenant is West African Palm Oil Limited (WAPO) who will agree to rent your land for 25 years, with fixed annual rental uplifts of 5% a year built into the contract.
WAPO will be responsible for all cultivation and harvest tasks, and for bringing jobs and wider economic benefits to the local community – whilst growing a crop that is both traditional and much in demand across Africa and, indeed, across the world.
The oil palm is native to Sierra Leone and the rest of equatorial Africa, but, as London-based Hardman & Co pointed out last year, much of the tree stock is neglected and low-yielding. WAPO is one of many companies already investing in the crop in the region in order to bring West Africa’s output up to world standards through modern cultivation techniques.
With support and approval from the local community you can be assured that your investment will have a truly positive impact on local lives and economic growth. And central government in Sierra Leone is also supportive of developments such as this.
At last year’s Budget Hearing of the Ministry of Agriculture, Forestry and Food Security, ministers were urged to encourage palm oil development in Sierra Leone, and were told that the country could be ranked in the world’s top five producers by 2017; currently, Sierra Leone is ranked 15th.
However Sierra Leone is also keen to avoid the rampant land grab by major multinationals which has occurred in neighbouring Liberia in recent years, which is why our project stands out. Your land will be held on only a medium-term lease and rented to an operator known to and approved by the local community, rather than sold outright or on a very long lease to a large corporate. Leases in Liberia, for example, to companies such as Equatorial Palm Oil and Sime Darby are generally 60+ years and effectively take substantial control from local people.
In return for your outlay of just £21,000, you will receive an assured high income for up to 25 years and with the option to exit at any stage and at a higher price via our established trading platform.
You will also have the option to cash in your investment after just five years. Plantation Asset Management has an agreement with an FSC-regulated offshore agricultural fund that will make an offer to all landowners at that stage in the project’s life. You will not have to accept the offer, but the fund is committed to make one – at terms that will represent not less than a 50% rise in capital value.
All set up, legal and administration costs are built into the initial investment, and income will be paid gross. There are no hidden charges, and the only fee you will incur will be our 3% trading charge if you sell your land.
The investment offers the following benefits
- Minimum investments required is for 10 acres
- Gain fixed income of 12.5% in the first year
- Annual income increases by 5% from the second year, for the first five years
- The land appreciation is expected to be no less than 5%
- Investors can exit anytime through our established trading platform
- Investors gain annualised returns of 17.5% in 2 years of investment
- Buyout in 5th year by FSC regulated offshore agricultural fund
- Project fully supported by the local leaders and community
- The project aims to bring economic benefits to the local population and offers health, food and education facilities to the local communities
- Investors receive leasehold title to tangible asset
- The operators and tenant is one of the largest farmers in West Africa handling more than 18,000 hectares of plantation
- An investment team that has experience of over 27 years in African farming and plantation projects