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Uruguay Farm Sales Update

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Currently, we find there is strong interest from international buyers, but due to historically low farm prices, there is reluctant interest by vendors to sell.   

2019 is a year where we have seen many international investors looking for opportunities in farmland in Uruguay with some lucky enough to actually buy in this depressed market.

As an update from my side, prices of farmland in Uruguay are 45% down as compared to 2014.

We were recently negotiating a farm sale of 8,500 hectares in Cerro Largo at USD 2,200 per hectare (owned by a Dutch pension fund). The offer was rejected, but I´m hopeful that we can continue conversations. 

Premium cropland is now available at prices of from 6,500 to 7,000 USD per hectare.

Due to Argentina’s political problems ( an uncertain election ), and UPM 2 Forestry companies decision to construct their second mill in Uruguay there is still some good opportunities for buyers before prices return more to a norm.

Funds from Germany have already invested seriously earlier this year in cropland. In forestry, we saw the departure of Harvard Asset Management replaced by Greenwood/Nuveen coming in.

Forestry is a difficult market and has access to a few major players. Cattle land, on the other hand, is always possible in Uruguay.

Some very attractive properties are available due to lack of liquidity

I have some European clients who now consider an investment in cattle/beef operations to be less sustainable.

That is a different perspective than what we locally have in Uruguay. I might very soon also have a citrus farm/company available for sale (European owners). 

Below some of the most relevant transactions. For each transaction, we can also provide the information on soil classification, agricultural use and location. The Uruguayan farmland market is quite transparent and mature as compared to other South American countries.

Based on our market expertise in many cases, we know or can easily find out who the sellers/buyers were. 

DateInvestmentSizeUSD/HA
Region
13/09/1919.500.0007.8152.500
DuraznoBulgheroni selling
03/07/193.199.5004746.750
Canelones
24/06/1992.791.96115.1976.106
Cerro LargoHarvard AM selling, Nuveen buying
14/06/1911.810.3186.5611.800
Cerro LargoCampos Orientales selling, local buyer
29/05/1918.502.9895.7803.201
San JoseSean Connery selling, french buyer
20/05/1913.609.8142.0016.800
Rio NegroGerman Family Office buying
20/05/1910.431.1321.5346.800
Rio NegroGerman Family Office buying
16/05/191.318.4802206.000
Canelones
09/05/194.000.0002.1541.857
Treinta y TresUS family office buying
25/04/193.924.0004369.001
Rio Negropremium crop
09/04/19800.0001844.349
Canelones
08/04/191.260.0007121.770
Artigaslowest 
28/02/196.091.3329246.594
Paysandu 

Source: Wilfred Morren ( indépendent farm broker )

Montevideo

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