1,500-Acre Brazilian Ranch and Coconut Farm
Bahia, Brazil | 1500 Acres
The Bahia Ranch is an ocean front cattle ranch with 1.2 miles of pristine white sand beaches in Bahia, Brazil. The property consists of a total of 1,500 acres, 580 acres is pasture land for cattle, 30 acres is dedicated to the house and pool, 240 acres are lakes and ponds, 230 acres is dedicated to coconut production, 15 acres is sand, and 405 is native trees/bush. The ranch area consists of enough grassland to support 250 head of cattle, this grassland can be upgraded and expanded into the coconut area. All permits are in place – including GPS title – plus infrastructure comprised of three homes, one being a owner’s house, roads and electricity.See More Details
Bahia state is considered to have significant upside, it has a strong local market providing significant economic advantage for exports and receiving inputs. This particular region of Brazil is known for excellent weather, beautiful virgin beaches, and lack of access. A new airport in the local town next to the property, of Caravelas, Bahia starts domestic flights on July 31, 2016. Land prices will increase significantly after domestic flights start, making this the newest region for potential ocean front resorts and private retreats.
Brazil is clearly an agriculture powerhouse and its role in global trade will continue to expand. The Brazilian government is committed to developing infrastructure in the emerging agricultural regions, particularly in rural regions that face high unemployment, and strongly supports export oriented growth. While the Brazilian government is cautious and protective on issues related to large-scale foreign land ownership (i.e. land grabs by sovereign funds), it supports foreign investment aimed at improving production and infrastructure, especially in northern Brazil.
Caravelas, Bahia is strategically located near two ports and is close to major local markets (Porto Seguro, Bahia; Ilheus, Bahia and Linhares, Espirito Santo). It will prove to have a significant economic advantage for exports and receiving inputs as trains and roads expand in the region. The location makes the property a great opportunity to have both income and land appreciation.
The region has two large marine reserves to the north and south of the location. These Marine reserves are present as this region hump back whales come from the Artic and reproduce, making the location ideal for whale watching.
The 10,000 square foot main home is a master piece of Brazilian rustic style, entirely made of high quality Brazilian hardwood. The floors and walls are Brazilian walnut, the external walls are treated eucalyptus, and the structure is made of Brazilian Massaranduba, another noble Brazilian wood. The house is two floors, has seven bedroom suites each with their own bathroom, and the tower next to the house is three floors with one of the bedrooms in the tower. The house also includes a sauna, outdoor barbecue, a large swimming pool that is nearly 70 feet long, and has 30,000+/- gallons of freshwater storage.
The climate of the region of the asset is tropical with dry season, with greater rainfall between December and May and a dry season beween June and December. The winter average temperature varies from 57 °F to 87 °F, and in the summer it varies from 62 °F to 95 °F.
The region of the asset, is flat land, no real undulations.
Recently, Brazil has been rocked by social unrest and political scandal. Combined with relatively high interest rates and declining oil prices globally, Brazil has also been experiencing lackluster economic growth. Due to the current economic turmoil, potentially high-value assets and opportunities are under priced given the steep depreciation of the Brazilian Real, particularly in terms of the US Dollar.
While the Brazilian government is cautious and protective about issues related to large-scale foreign land ownership (i.e., land grabs by sovereign funds), it supports foreign investment aimed at job creation and development. This property is also a smaller property that is not with as many restrictions as a larger farm.
In the long term, Brazil will remain Latin America’s largest economy and a prime geography for business. There will undoubtedly be more discord to come, but investors should not underestimate the resilience of what often is referred to as the "country of the future" making now the time to invest in Brazil.
• Main timber and agriculture production regions have rainfall between 40-60 inches/year, good temperatures and plenty sunshine (average temperature: 77 degrees, annual rainfall: 51 inches), this property is in a region that is on the higher end of rainfall.
• No winters allow year-around operations, tree growth and pasture land growth, providing ideal cattle and coconut conditions.
• Brazil has the largest poultry industry in the world, and a strong beef and pork industry, favoring domestic demand.
• Infrastructure including highways, roads, electricity & close to ports
• Brazilian born farm manager and human resources on-site with excellent credentials
• All permits are in place including GPS title
• Potential for additional land development, the American manager in place to property manage and administer the property has a development plan to expand coconut plantations and to reseed the cattle area, with the possibility to permit for resorts.
• Current Real/Dollar exchange rate is 3.5 Real per dollar. This represents a 50% discount for US dollar denominated investors since early 2012
It also includes land management, property keeper salary, taxes for the first two years, and property administration.
A Brazilian company owned and operated by an experienced American expert in Brazilian property management will stay on board to manage the property for a minimum of two years to help a new owner transition into the property.
Co-listed with Michael Greene of Brazil Property Group.