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UFF AFRICAN AGRI INVESTMENTS
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CONTENT PAGE1. Why invest in African Agri Assets?
2. Who are we?
3. Why invest with us?
4. What is the process we follow?
5. Our farms
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WHY INVEST IN AFRICAN AGRI ASSETS?Feeding our ever-growing world has turned agri-businesses into
a growth opportunity around the globe – and, with its vast tracts
of available arable land, Africa is well positioned to capitalise
on this as there is an abundance of fertile soil with a wide range
of climates for agricultural diversity.
For long-term investors, agriculture is an increasingly attractive asset
class that offers exciting investment potential within a diversified
portfolio focused on the entire value chain. Agribusiness touches on
many issues. It is vital for food security, job creation, creating wealth
by empowering farmworkers and increasing economic growth,
especially in rural communities. With agricultural investments, on
industrial scale, we can reach our potential as a continent and
once more be the world’s breadbasket.
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WHO ARE WE?We are a leading specialist advisor in agriculture investments dedicated to
the African continent, providing qualified expertise in both production and
investment within this sector. Through our exclusive agri-investment partnership
with Old Mutual Investment Group, a leading African investment manager,
we have firm roots and a significant network across the African continent.
We are Fund Advisors for the Futuregrowth Agri-Fund 1 and the Futuregrowth
Agri-Fund 2, which are managed by Futuregrowth Asset Management. We
operate a dedicated country fund, together with local embedded pension
funds in Swaziland.
Our overall investment strategy has been designed to add value through
funding, operational excellence and the positive social impact our investments
have on the lives of the farm workers and their families. And with over 100
collective years of experience in all agricultural disciplines, our dynamic and
innovative team has achieved a solid track record of providing access to
solutions that truly meet investors’ agri-investment needs, while also focusing
on contributing meaningfully to each country and people.
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We are experts in both farm operation assessment and
farmland investment management. We do this through
an integrated approach where both profitability and
sustainability are key with a long-term view.
WHY INVEST WITH US?As a market leader in specialised commercial farmland asset
management in Africa, we are well positioned to advise on your
African Agri-Investment needs. As such, in collaboration with
our partners, we are constantly expanding and diversifying the
investment opportunities to be adaptable to institutional investors’
interests and requirements.
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WHAT IS THE PROCESS WE FOLLOW?The agriculture investments are in actual farmland projects and infrastructure, which are leased to approved operators to manage, develop and run to their full potential.
AGRI FUND – Investors’ money flows into the Agri Fund. The objective of the Fund is to facilitate the creation of world-class agricultural farms in Africa.PURCHASE FARM – We examine a broad selection of potential investment entities and identify those that we believe are most likely to meet the required selection standards for our funds. After rigorous assessment and final approval from the Investment Committee, the Fund acquires the farmland and related infrastructure.
Agri Fund Acquire Farm
Fund Appoints Operator
Operator Leases Farm
Improve & Expand Farm
Exit/Evergreen Investment
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APPOINTMENT – The Agri Fund appoints an operator who leases the farm and is in charge of the entire
value chain.
LEASING FARM – The Fund offers multiple sources of income, namely lease income from the selected operator,
capital appreciation, optional crop/price risk exposure and value creation from operational efficiencies.
IMPROVE AND EXPAND FARM – The investment model of the Fund is to develop commercial scale
agricultural initiatives that lead to:
• land development and conservation
• environmental reform
• job creation
• healthcare and education
• improved housing conditions
• food security.
EXIT/ EVERGREEN INVESTMENT – Although the investments are considered to be longterm, exit provisions
are always pre-considered. These possible exit strategies include: direct sale of asset; roll-over into succession
fund; trade sale; listing on a stock exchange and refinancing of companies.
The simplified Fund model is to invest in sustainable farmland, lease the land to an operator,
extend and enhance the value of the farm during the Fund’s term, and realise a realistic and
attractive return on exit 10 to 12 years later.
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OUR FARMSBelow is a table with the South African farms included in the Agri Fund I and Agri Fund II.
Farm Acquisition Date Region Crops Total Farm Size
Marble Hall December 2010 Limpopo Citrus 936 hectares
Marble Hall Cash Crop Farm October 2014 Limpopo Cash crops 1 734 hectares
Northern Cape Grape Farms August 2011 Northern Cape Table grapes 3 183 hectares
Piketberg November 2011 Western Cape Deciduous and stone fruit
1 035 hectares
Eshowe January 2014 KwaZulu Natal Citrus,Bananas and macadamia nuts
714 hectares
De Riviere Farms August 2015 Western Cape Citrus, table grapes 1 080 hectares
Bonathaba - Zwartfontein Farms December 2015 Western Cape Citrus, table grapes 780 hectares
Brandwacht Farms February 2016 Western Cape Table grapes 172 hectares
In coming years, new farms in South Africa shall be acquired to add to our current portfolio.
We are expanding into the other parts of the African continent, with new agricultural Fund
portfolios in which we are active in Nigeria, Swaziland and Zambia and we are actively
looking to become active in other countries in both North, West and East Africa. With regards
to Nigeria, we have set up a partnership with the Nigerian Sovereign Wealth Fund (NSIA).
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OUR COMMITMENT TO IMPACT INVESTINGSocial responsibility is a key component in UFF’s investment
process, namely creating wealth through worker and community
development, rural development and economic empowerment.
We incorporate social and environmental considerations in our
decision-making at all levels.
We are committed to sustainable development and continuous
improving labour conditions on farms and pack houses; all of which
are an integral part of our approach. We implement, support and
monitor various best practice Environmental Social Governance
(ESG) standards and guidelines for farming including promoting
environmental sustainability, respecting labour and human rights,
respecting land and resource rights and high ethical standards.
WORKER EMPOWERMENT: LETTIE’S STORY
Lettie Marcus, one of the workers on the Fund’s Piket-Bo-Berg farm, describes how life has changed for her since the Fund acquired the farm:
“I started working on the farm 10 years ago. I thought I would always be cleaning and be active in the kitchen. But (with the Fund) I was given the opportunity to develop myself and I took the opportunity to learn. I had no understanding in the past of things about our land, where cities were or how the climate worked. Now I know all these things and it makes me look at things in a new way. Now I can assist my daughter with her mathematics and geography.”
Today, Lettie is a social development worker and one of four carefully selected trained community healthcare workers on the farm. She is also a member of the farm’s health committee, housing committee, women’s forum and school board.
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HEALTHCARE JOBS & HOUSINGEDUCATION &
TRAINING
399 3 968 3 068Employees with access to
primary healthcareSeasonal employees Employees receiving basic
agricultural training
2 023 2 949 28Employees with access to
HIV/Aids servicesProjected new jobs Employees receiving
management training
1 905 116Employees provided with
housingEmployees receiving adult
education (AET)
718Permanent employees
(>1 year contract)
OUR EMPLOYEE STATISTICS
Incorporated in the investment mandate is a requirement to invest a prescribed amount into the provision of basic education and healthcare to the permanent workers on the Fund’s farms. As at 31 December 2016
Source: Futuregrowth Asset Management
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DUNCAN VINKManaging Director of [email protected] Tel: +31 10 268 0669
CRAIG CHAMBERSHead of International Distribution, Old Mutual Investment [email protected]: +27 21 509 5054
CONTACT DETAILS
UFF African Agri Investments
Cape Town | Rotterdam
+27 21 421 2129 | +31 10 268 0669
