Dec. 1, 2011
/PRNewswire/ -- Adecoagro S.A. (NYSE: AGRO, Bloomberg:
, Reuters. AGRO.K), one of the leading agricultural companies in
, announced today that on
November 30, 2011
, it completed the sale of "La Alegria" farm, located in General Villegas, province of
Buenos Aires, Argentina
, for a total price of
. The selling price of this farm was 23.0% over Cushman & Wakefield's independent appraisal dated
La Alegria is a 2,438 hectare farm purchased by Adecoagro in 2007 for a total of
per hectare. The farm was used for cattle grazing by the former owner. Following the initial acquisition, Adecoagro applied its sustainable production model to La Alegria to transform a total of 1,948 hectares for the production of soybean, corn and wheat. After four years of enhancing the productivity of the soil by applying no-till farming, crop rotation, balanced fertilization and other best practices, the farm was sold for
, equivalent to
per hectare, obtaining an internal rate of return of 23.2%. This transaction will generate approximately
of operating profit for the fourth quarter of 2011.
During the last six years, Adecoagro has been able to capitalize gains of over
by strategically selling at least one of its fully mature farms per year. Monetizing a portion of its land transformation gains each year allows Adecoagro to redeploy its capital efficiently and continue expanding its operations by acquiring land with high transformation potential.
Adecoagro believes that the consistent development and sale of farms like La Alegria evidences Adecoagro's ability to continue generating shareholder value through its land transformation activities and sustainable production model.