Since the beginning, Farmfolio has been about providing access to agriculture. Now, we’re taking the next step with LOTs. LOTs, or Land Ownership Titles, are a revolutionary new type of farmland ownership: each LOT represents a 1-hectare portion of a pre-developed farm, with integrated solutions for farm management and product offtake.
Learn more about LOTs: Launch Webinar Recording
The initial series of LOTs focuses on Pietrasanta, a 230-hectare organic coconut plantation on Colombia’s Atlantic coast. Originally a cattle ranch, Farmfolio began developing the land in 2017, not only planting the coconuts but installing infrastructure such as 3-line power, underground pipe networks, and over 600,000 cubic meters of wells and reservoirs.
“This is the right time for this project,” says Dax Cooke, founder and CEO of Farmfolio. “With the election right around the corner, people are looking for an asset class that is protected against the volatility of publicly traded markets. No one knows what’s going to happen, and so real, non-correlated assets look very attractive right now. LOTs really suit the needs of a diversified portfolio.”
“This project really appeals to people who like the income and appreciation potential of real estate, but are rightfully concerned about the future of the market,” Dax said. “With COVID, residential real estate is in upheaval, as people working from home are rethinking their living scenarios. The flight from offices has also put pressure on the commercial space – not to mention the death of retail. So a lot of people are looking for alternatives.”
“This is an amazing project,” said Peter Badger, a Farmfolio investor and a broker for the LOTs opportunity. “My wife Karen and I have a very alternative asset-focused philosophy, and even within the ag space, we like to be highly diversified. LOTs are a great opportunity to diversify within agriculture, and the land sale structure makes it a very easy opportunity to understand.”
“The built-in offtake agreement and farm management contract are such a huge deal here,” said Karen Williams, LOTs broker. “We’ve gotten involved with deals that didn’t have clear solutions for sales, and it really came back to bite us. The Farmowner’s Association aspect of LOTs allows LOT owners to collectively generate returns, but participate individually. It’s a major plus in a space where commercialization is key to margin.”
“We’ve been with Pietrasanta since the beginning, and we’ve seen first-hand the effort and energy put into this project by Farmfolio and GP AGRO, the farm manager. What they’ve been able to do, building an organic coconut plantation from the ground up and adding infrastructure and irrigation systems and everything – it’s truly incredible,” Karen continued.
Check out Peter and Karen’s last visit to the Pietrasanta farm
“There’s a lot to like about this project,” Dax concluded. “With so many people seeking to branch out into alternatives, we feel like LOTs have come at the perfect time. Anyone looking for income, long-term appreciation, diversification, or inflation hedging would be interested in the project, especially at a time when there’s so much uncertainty. In fact, we’ve already sold about half of the available units.”