Project Greengold Equity

There is a shared agreement amongst investment experts that new arable land is a superb investment for a simple reason. As people in China, India and elsewhere grow richer, their demand for more food increases and one kilo of meat requires around eight kilos of grain to feed the animal. As crop demand and prices rise, so does the value of the land on which the crops are grown. The global demand for soft commodities will only increase.

Also, rising oil prices and global warming are also forcing countries to urgently develop other sources of energy and the most efficient way to do this is to obtain it from renewable products like Soy, Corn and Sunflower. These commodities are all proven to be excellent generators of Bio-fuels and other alcohols.

Invest in new agricultural land - Greengold Equity offers Investors an Income Return of 14%, indexed to crop prices, plus an indexed Capital Return; this is over 10 years with an exit opportunity after 5 years. Minimium Investment required from £100,000.

Invest in Euros, Dollars or Sterling

Clients can invest using either Euros, US Dollars or Sterling. Returns will also be paid in the selected currency. For example, if you choose to invest Sterling your returns will be paid in Sterling.

Greengold Equity offers the Investor variable – and very high – Income and Capital Returns based on crop prices, with the risks, upside and downside, associated with fluctuating crop prices borne by Investors.

To obtain the highest Capital Return Investors should regard GreengoldEquity as a 10-year investment. But Investors have the choice of a shorter-term exit after 5 years. Larger Investors and Consortia can exit any time after 5 years, and can remain up to 20 years.

The Returns to Investors are indexed according to the Greengold Crop Price Index. This uses the prices shown on the website of the Bolsa de Cereales, the main agricultural exchange in Argentina founded in 1854.

The Greengold Crop Price Index is based on the average price of the crops grown on the Land – wheat, soya, maize and sunflower – weighted according to the frequency they are sown in the crop rotation. It is revised every six months at the end of June and December.

The normal initial Income Return to the Investor, as a percentage of the Contribution, is 14%. The Income Return then rises – or falls – according to the Greengold Crop Price Index. The Income Returns are paid annually in arrears.

Large Investors or Consortia receive a higher Income Return as follows.

• Contribution $500,000/£250,000 - $1,000,000/£500,000: Income Returns higher by 1%
• Contribution over $1,000,000/£500,000: Income Returns higher by 2%

Investors receive a Capital Return also based on the Land Value. This rises (or falls) in accordance with a three-year moving average of the Greengold Crop Price Index. The Capital Return is 70% of any increase in the Land Value, such that Investors receive their original Contribution plus 70% of any increase in Land Value. If the Land Value falls, they just receive their original Contribution. So, for example, if crop prices double, they receive a 70% Capital Return.

The Capital Return for Large Investors and Consortia is 80% of any increase in the Land Value, such that Investors receive their original Contribution plus 80% of any increase in Land Value. If the Land Value falls, they just receive their original Contribution. So, for example, if crop prices double, they receive a 80% Capital Return.

More information About Project Greengold From Project Manager Stefan Raywood

Stefan Raywood, Project Manager recently took part in an interview about Project Greengold, detailing his thoughts on the investment’s history, its popularity and how market conditions have progressed since its launch a year ago when it was first launched.

1. Why has Project Greengold been so popular?

Property in the UK is falling in value. In the US, it’s falling at an even faster rate. There is uncertainty in the property market so investors are looking at other opportunities. However, arable land has been increasing in value at a dramatic rate and many people think that this trend will continue. It’s in the news daily – Governments are trying to strike a balance between worldwide food shortages and the use of bio-fuels as an alternative to fossil fuels. Either way, there is more demand for soft commodities, driving up land prices and benefiting land owners like Greengold investors.

The simplicity of the investment is one of its main attractions. It is not a property investment so there is no planning permission to apply for and management and maintenance are taken care of by movewithus and our partners. The investment structure is not a new concept; speak to farmers in the UK - 60% are estimated to be Tennant Farmers, meaning they don’t own the land they farm.

2. How varied are the backgrounds of Greengold investors?

As well as the UK, the development has attracted investors from Greece, Belgium, Ireland, Canada, Spain, the US, Argentina, Norway, Holland, Sweden and the UAE. Their backgrounds have been very varied - solicitors, doctors, property developers, company directors, accountants, insurance risk assessors - amongst others. I have even had a couple of farmers invest; in fact they both invested quite a considerable sum of money.

We also advertised in Money Week, Shares Magazine, Investors Chronicle, City AM and other publications aimed at the City of London market which proved very successful. City investors are fully aware that soft commodities - wheat, rice, maize, barley, etc - are rising in price at an incredible rate. When they saw Greengold Optimum was offering the chance to invest in arable land, they jumped at the chance - I must have a client from virtually every bank in the city!

3. What is the average amount people have invested?

£60,000 seems to be about the average but some clients have invested considerably more. When clients are investing such vast sums, they make sure that they thoroughly understand the particulars of the investment. I’ve had meetings with clients who have brought along their accountants and solicitors and many clients have taken independent legal and/or tax advice. This certainly keeps me on my toes but, due to the transparency of Greengold, I am confident in the product I am selling. We are not taking advantage of a grey area or a loop hole or even using a clever method of accounting; its simple - own the arable land and a farming management company will rent it from you and buy it back in the future for more than you paid.

4. After initially investing, have many people reinvested as newer versions of Greengold have been released?

Around 15% have invested in one phase and then returned to invest in another. Many clients have invested personally and then invested via their SIPP (Self Invested Personal Pension), especially after we announced that many of the UK’s leading SIPP providers accepted Greengold as a secure and stable investment. I’ve also had clients that have recommended friends, family and work colleagues.

5. A lot has changed in the world this year. How have the market changes affected the investment?

Indeed, a lot has changed and is still changing but it has not affected the investment - the returns remain the same. In many ways, the current market conditions are actually beneficial to Greengold investors. I know I have said this before but the news is full of reports of food prices rising and the need for bio fuels. When you have an investment that gives the investor the opportunity to profit from these situations, it is clearly going to be very popular. It is said that each year there are 75 million more people on the planet. The demand for food from India and China is staggering. In the UK, the average price of arable land is now £5500 per acre, an increase of 10% in the first quarter of this year. In comparison, Greengold Optimum is £810 per acre, making it an extremely accessible investment for people from all financial backgrounds.

6. Once Optimum is sold out, are you looking at releasing new Greengold investments in the future?

Our office in Buenos Aires is busy sourcing land and carrying out all the due diligence and research necessary. We are also looking at releasing a version of Greengold in Uruguay. In Argentina, if you own arable land and wish to sell it, you won’t have a shortage of purchasers! Arable land is being bought by Chinese, Indian, American and European investors, not to mention farmers in Argentina!

If you are interested in investing in Project Greengold complete our enquiry form for a prospectus.

Project Greengold Equity - Argentina Land Investment