Investment Opportunities in Paraguay
Real Estate Projects
| Project |
Purchase of extensive areas of land suitable for farmland and sugar cane plantations |
| Description |
Many attractive opportunities are available in Paraguay to benefit from farmland investments and sugar cane plantations, which is well below the price of land in the neighbouring countries of Argentina and Brazil. Paraguay is a land of opportunities.
The proposal is to purchase virgin land in Paraguay, carry out the land cleaning ( as regulated by current environmental legislation), and exploit the cattle breeding and selling to slaughter houses.
Other areas for sale are suitable for sugar cane plantations in areas which benefit from excellent logistic communications ( road and rivers). |
MAPS AND LOCATION
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| Location in South America |
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| Paraguay map |
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| Paraguay roadmap |
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| Paraguay rainfall |
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| ECONOMY AND BUSINESS INFORMATION |
| Business Guide 2010 (Embassy of India in Buenos Aires) |
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| Country Report -Rabobank |
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Economic Outlook
(EIU) |
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| Report on Economic Freedom |
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| IMF Report 2009 |
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Useful links:
Central Bank of Paraguay
Ministry of Agriculture |
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| CURRENT BUSINESS OPPORTUNITIES |
| Price of real transactions in the past two years |
Client A ( Uruguayan) : Bought 24,000 hectares in 2007 @ 65 usd per hectare and sold the land @ usd 115 per hectare 6 months later.
Client A (same as above) : Bought 24,000 hectares in 2007 @ usd 50 per hectare and sold the land in 2009 @ usd 150 per hectare.
Client B ( USA): Bought 8,000 hectares in 2007 @ usd 80 per hectare and sold the land in 2009 @ usd 200 per hectare.
Client C ( Uruguayan) : Bought 8,000 hectares @ usd 80 per hectare in 2007 and sold the land @ usd 200 per hectare in 2009.
Client D ( Dutch) : Bought 60,000 hectares in 2007 @ 135 per hectare ( has rejected offers to sell @ usd 185 per hectare.
Client F (Uruguayan) : Bought 17,000 hectares in 2009 @ usd 80 per hectare and is willing to sell @ usd 150 per hectare.
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| Profitability per cattle farm |
The business model is that 240 kg calves are bought during June through October and bred during 12 to 15 months. During this period of time the average weight gain is 200 to 240 kgs per year under normal conditions. The animal is ready to be sold when the weight is of 450 kgs.
Busines model:
All values in usd per hectare
| Estimated purchase cost of land |
$ 200 |
| 75% of land cleaning (*) |
$ 262 |
| Cattle purchase and breeding |
$ 251 |
| Total investment per hectare |
$ 713 |
| Net profit before tax(for 75% of land) |
$ 131 |
| Income tax 10% on 5. |
$ 13 |
Net Income after tax and before profit
remittances. |
$ 118 |
| Return of Investment ( 7/4) |
17% |
(*) Environmental laws in Paraguay protect 25% of virgin forests i.e. only 75% of virgin forests are allowed to be cleaned for cattle breeding purposes.
More detailed information about purchasing virgin land in Paraguay available upon request. |
| Location of land currently on sale |
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| Location of properties |
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Current Properties On Sale
Aguas Dulces
- An exceptional farm of 20.000 hectares in the location of “Aguas Dulces”.
- Price per hectare: USD 750. The farm has 7000 hectares of good pastures.
- 3 individual virgin land forest of 4000 hectares each at USD 260 per hectare.
- One property of 8000 hectares at USD 400 per hectare.
- See properties location map
Photo Gallery
Chaco Norte
| Location of land on sale in Chaco Norte |
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| Description |
This an unique opportunity to invest in a very large plot of land amounting to 53,000 hectares with 6,000 hectares of excellent pastures and very good facilities to continue operating as a commercial business for cattle breeding in a very large scale. |
| Price per hectare/Total Price |
USD 480 per hectare. Total value of the farm : USD 25.4 MN |
Large Plot of Land Suitable for Sugar Cane Plantation
| Description |
A very large property currently being exploited for cattle breeding. The land is suitable for growing sugar cane (70%-80%).
Located in the oriental part of the country at a distance of 390 kilometres from the capital city, Asuncion. From the total distance of 390 kilometres, 375 kilometres is asphalt road ( “Ruta 3” and “Ruta 5”). Travel time from Asuncion takes 4 hours and one hour by plane.
Further information available upon request.
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| Land area |
31,000 Hectares |
| Price per hectare/Total price of land |
USD 1600. /Total price of land amounts to USD 49.6 MN |
| Location of land |
See map
Google Earth : 23* 03’ 05.44” S - 56* 45’ 45.12” W |
