One hundred percent of the shares of a Luxembourg-based company known as Paraguay Agricultural Corporation S.A. (PAYCO) are being offered for sale.
Through its Paraguayan subsidiary, PAYCO manages over 144,000 hectares (355,832 acres) of land throughout that country, where it conducts agricultural, cattle, and forestry activities.
EXAN Capital Realty, a Miami-based real estate investment advisory firm, was engaged to carry out the sale process.
The portfolio includes 6 full-ownership properties amounting to more than 128,000 hectares (316,295 acres), representing 88.9% of the portfolio, and 8 leased properties adding another 16.000 hectares (39,537 acres), or 11.1% of the portfolio. PAYCO currently holds 38,500 head of cattle, 15,800 hectares (39,043 acres) of agricultural production (chiefly soybean, rice, corn, and wheat), over 5,000 hectares (12,355 acres) of forestry plantations, and 25,000 hectares (61,776 acres) of natural forest.
Paraguay is one of South America’s most attractive agro-business markets, both because of its favorable climate and the quality of its lands. Other significant factors are its political stability, fiscal regime, and its open-arms attitude toward foreign investment.
The presumably highly competitive sale process is scheduled to start during the first half of February.
Given the magnitude of the asset, its sale should fetch the attention of global investors, including sovereign funds and any other group that recognizes in PAYCO a magnificent upside and sustainability opportunity.