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
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.
| Date | Investment | Size | USD/HA | Region | ||
| 13/09/19 | 19.500.000 | 7.815 | 2.500 | Durazno | Bulgheroni selling | |
| 03/07/19 | 3.199.500 | 474 | 6.750 | Canelones | ||
| 24/06/19 | 92.791.961 | 15.197 | 6.106 | Cerro Largo | Harvard AM selling, Nuveen buying | |
| 14/06/19 | 11.810.318 | 6.561 | 1.800 | Cerro Largo | Campos Orientales selling, local buyer | |
| 29/05/19 | 18.502.989 | 5.780 | 3.201 | San Jose | Sean Connery selling, french buyer | |
| 20/05/19 | 13.609.814 | 2.001 | 6.800 | Rio Negro | German Family Office buying | |
| 20/05/19 | 10.431.132 | 1.534 | 6.800 | Rio Negro | German Family Office buying | |
| 16/05/19 | 1.318.480 | 220 | 6.000 | Canelones | ||
| 09/05/19 | 4.000.000 | 2.154 | 1.857 | Treinta y Tres | US family office buying | |
| 25/04/19 | 3.924.000 | 436 | 9.001 | Rio Negro | premium crop | |
| 09/04/19 | 800.000 | 184 | 4.349 | Canelones | ||
| 08/04/19 | 1.260.000 | 712 | 1.770 | Artigas | lowest | |
| 28/02/19 | 6.091.332 | 924 | 6.594 | Paysandu |
Source: Wilfred Morren ( indépendent farm broker )
Montevideo
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One of these sales stands out as a 50% reduction on the price paid. A brutal drop.