Investment Proposal
Nova Brazilandia Ltda is seeking limited partners for Fazenda Nova Brazilandia Ltda, an international real estate and agriculture private equity investment opportunity in Brazil. If you are interested in buying shares or obtaining specific information please contact james@novabrazilandia.com or call +38 0 67869 1435 · Nova Brazilandia Ltd is seeking a fund size of: $3,000,000USD, $500,000 USD worth of shares has already been sold. · One share unit is worth $1000 USD but a minimum share purchase of $50,000 USD is required. · Maximum number of shareholders: 60 · Expected annual ROI and cash flow: 25-40%, (annual payouts will be reinvested into land payments, land clearing, soil development and planting before profits will be shared) However there is a minimum of 10% ROI on loaned funds. · Profits will start to be shared once the farm is cleared and fully developed (budgeted 3-4 years). · Investment life of this project is 7 years, on the 31 December 2016 you have the option to liquidate your shares for the current assessed value or you can continue enjoying the great agricultural returns as a shareholder. If shareholders want to exit the project before the 2014 optional liquidation date, Nova Brazilandia Ltda will assist you with finding a new investor to take over your shareholding. · Profits from the first 3-4 years will be reinvested into the clearing and development of the rest of the farm. Once the farm is fully cleared and developed returns will be shared annually. Share payments maybe made earlier than 3 years if the funds invested allow us to develop the land sooner than budgeted. Monthly reports on expenditure, development and projections will be emailed to all investors. Monies paid to Nova Brazilandia Ltd will be invested into the current agricultural land development project. We will progress in stages, and stagger the development so all the land is not demanding the same resources and inputs at the same time. Shares are available as $1000USD units and a minimum purchase of $50,000USD is required; and a minimum of $1000 as a 'secured' loan to the company. The current property with shares available is an 1188Ha block that is situated 44km from Luis Eduardo Magalhaes (LEM for short, the main agricultural town) with all major dealers and seed companies like John Deer, Valtra, Massey Ferguson, Case, Cargil, Bunge, Zimmatic and many more. It is a dry land farm that gets approximately 1600mm of rain per year and the altitude is 800m (2600ft) above sea level. It has 100Ha open that has been farmed for over 10years. The property has good potential for also making a solid real estate return because of the close proximity to LEM and the grain receivers like Cargill and Bunge and Cooproeste. Also the access road that is planned to be sealed and there is electricity along the front and rear of the property. Neighboring farms are currently for sale for much higher asking prices. Each unit will be split approximately as follows throughout the life of the 7yr project; · 39% land purchase · 24% Farming operations, land clearing, development, fuel, seed and animals · 14% Fertilizers and lime · 15% Equipment and buildings · 8% Wages for staff and consultants * This is an outline of cost breakdowns for the initial farming of grass seed, soya, corn and cattle. This will be to start the money flowing back in so funds can then be reinvested into developing the rest of the farm and then in the future higher capital input crops like cotton and coffee, which also have higher returns. The shareholders will be able to have their say on what crops should be planted and all suggestions will be put forward to the agronomist for final decision. In the years following, the usual farm running costs, such as seed, equipment maintenance, wages, fuel and fertilizer will be taken out of the gross income, before profits are shared or reinvested. All shareholders will be kept fully informed with monthly reports of all farm and financial activities. If there is a shareholder that has a strong desire to only concentrate on one crop we will try to accommodate for this but this would only be available in certain crops like coffee and fruit that are long term permanent crops, otherwise crop rotation is required with other crops. We do not recommend putting all your investment in one place because every crop has profitability cycles. But in saying that Nova Brazilandia Ltda will have a separate investment group that will grow irrigated coffee only as the cost and returns structure are very different. Coffee is a crop that is put in the ground for about 20 years or generally the life of the irrigation system. You can read more about pricing and returns in the coffee section. The investment structure for irrigated coffee is as follows for a 700Ha property with 3 large pivot irrigators: · 46% land purchase · 33% Irrigation, well, pipelines, canals and electricity · 10.8% Equipment and buildings · 5% Fertilizers and lime · 4% Wages for staff and consultants · 2% Farming operations, land clearing, development, fuel and plants We have located a 700Ha block which is suited to irrigate coffee. It could also suit an intensive beef or dairying project. There is also the option for a further 800Ha beside the 700Ha to make it a 1500Ha project, all easily irrigated and only 30mins from LEM on asphalt all the way. Returns from coffee are currently very good compared to other agricultural products. Please forward your interest or questions to james@novabrazilandia.com