Faenza Capital – an investor group comprised of top athletes, artists and businessmen – announced the launch of its fourth pistachio cultivation project in Castilla-La Mancha, which will cover a total of 106 hectares located in the provinces of Cuenca and Guadalajara.
This project has a total investment of 3,200,000 euros and a profitability forecast of more than 20%consolidating the company as a benchmark in highly profitable agricultural investments, according to this group of companies in a press release.
The Faenza Capital project offers investors a solid and profitable opportunity in a booming sector. An internal rate of return (IRR) of 20% is estimated in a conservative scenario, with possibility of revaluing the land up to 5 times during the first nine years of production.
Pistachio cultivation, considered one of the most profitable bets in the agricultural sector, has a growing demand, according to projections, between 10 and 12% per year.
The success of the three previous projects, which also allowed the development of plantations in the region, demonstrated the stability and attractiveness of this type of investment, guaranteeing an attractive long-term return. The company has already raised 45% of the necessary capital and hopes to raise the remaining 55% from new investors. interested in the agricultural sector.
In fact, pistachio cultivation in Spain has experienced considerable growth in recent years. Currently, around 78,500 hectares are cultivated in the country and estimates indicate that Spain could become the world’s fourth largest producer of pistachios in less than a decade.
The climate of the region is ideal for this crop and Castilla-La Mancha is one of the main production areas in the country. The profitability of the project depends not only on the production of the fruit, but also on the revaluation of the land, since a conversion of arid lands into irrigated lands is undertaken during the process.
Project Phases
The IV Faenza Capital project is divided into several phases that include the selection and conditioning of the land, the installation of irrigation systems and its planting and maintenance, as well as the harvesting and marketing of the fruits.
Production will begin from the fourth year, with a The initial investment is expected to be recovered in the ninth yearFrom this point on, it is estimated that annual profitability will reach 50%.
This project benefits from the collaboration of Glezco Asesores y Consultores, responsible for its administrative, fiscal and financial management, while The Iberopistacho Group will be responsible for operational management.
The Faenza Capital project stands out for being a long-term investment, with a productive life of the plantations that can exceed 50 years. More than 50% of the initial investment is allocated to the purchase of the land and its conditioning, reflecting the company’s strategy of betting on tangible assets that revalue over time.
Faenza Capital is a Spanish company headquartered in Talavera la Real (Badajoz) dedicated to the structuring, development and management of sustainable and efficient agricultural projects.
