South America – ‘Biggest ever’ freehold land block up for sale

An area of Argentina bigger than the US state of Rhode Island or the UK county of Kent has been put up for sale in what is billed as potentially the largest freehold block of land ever to hit the open market.

An unnamed “Group,” which has owned the Estancia Punta del Agua in northwest Argentina since the 1980s, has put the 989,000-acre (375,640 ha, more or less) site up for sale in what is billed as offering the potential for “added value way beyond the cost of the scheme.”

Whilst the estancia withered as a farming estate in the 1950s, thanks to its lack of infrastructure, the building through the block of National Route 150, which connects the Argentine and Chilean coasts, and an electricity network has greatly improved the site’s prospects, said the agents handling the sale, Argentina-based Gateway to South America—Argentina.

estancia-punta-del-agua-crops“The estancia offers tremendous potential for modern agricultural production and high-value irrigated crops, including sugar beet, alfalfa, olives, vines and sunflowers,” said the agents.

The estancia has “appealed to several potential purchasers”, given the scale of interest in farmland from international buyers in the past.

Indeed, the dash for farmland by investors seeking to exploit higher crop prices has raised concerns in several countries, including neighbouring Brazil, which has tightened curbs on foreign land purchases.

In Argentina, sales of large blocks of land were blocked by measures to restrict foreign ownership. However, President Milei, elected late last year, has removed these restrictions by decree.

‘How do you value Kent?’

The purchase price of the estancia is relatively small, by European or North American standards, at a low eight-figure sum in dollar terms.

“It is a difficult question. How do you value Kent?”  but somewhere about $12 an acre is being used as a starting point.

However, the estate would need sizeable follow-up investment to fulfil its agricultural potential as a site with “vast areas” of silt soils, mainly to the north of the site, sitting on a large aquifer, and three rivers, of which one offers round-the-year water, running through the site.

GTSA brokers say the estancia needs an investor who understands agriculture and has the capital to invest after the purchase in a scheme of works to bring the land into line with 21st-century farming techniques.”

Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert property acquisition and disposal advice.

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About Geoffrey W W McRae

With a highly distinguished career spanning more than three decades across five different countries, New Zealander Geoffrey McRae has established himself as a leading authority on South American real estate, agricultural, and commercial matters. As the founder of Gateway to South America – a real estate consulting group specialising in six South American countries – Geoffrey has developed a reputation for discretion, expertise, and experience that has seen him represent some of the most prestigious clients in the region. His deep knowledge and experience of South American markets have placed him at the forefront of the industry and given him the opportunity to guide and advise with confidence and surety. His long and successful career – which continues to evolve and expand daily – is a testament to his talent, tenacity, and ambition.

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