Brookfield Said to Raise $300 Million for Brazil Farmland Fund

May 30, 2015 06:57 AM
Brookfield Said to Raise $300 Million for Brazil Farmland Fund

Brookfield Asset Management Inc., Canada’s largest alternative asset manager, has raised $300 million for a new agricultural fund targeting Brazilian farmland, a person with knowledge of the matter said.

The Toronto-based firm is targeting $500 million in total for the fund, with a maximum of $700 million, the person said, asking not to be identified discussing private information. Brookfield Brazil Agricultural Fund II will be used mainly to acquire cattle ranches that will be converted into sugarcane or soybean farms, said the person.

Brookfield has a long history in Brazil -- the world’s largest sugar producer. The company was founded in 1899 in Sao Paulo as Brascan Ltd. before changing its name in 2005. The asset manager is also raising a new commercial real-estate fund of about $1 billion focused on Brazil, people familiar with the matter said earlier this month.

Since 2006, Brazilian farmers have expanded the soybean planted area by 11 million hectares (27 million acres), mostly driven by demand from China. Most of the advance was over areas previously used for extensive, low-productive cattle breeding. While demanding massive investments in fertilization, the conversion of pastures into farmland tends to increase the value of land as soy and sugar cultivation is more profitable.

A Brookfield spokesman declined to comment.


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Spell Check

america, DC
5/31/2015 10:06 PM

  but this time is different!!!! remember pru, and all the insurance companies buying into farmland in the 80's. But this time is different!!!!! stay liquid and when all the funds run for the door and dump, we shall have chance to buy. always trade contrarian!!!! always use rule of 3. it is cheap, it is really cheap now, it is really, really cheap now. then step in like the late 80's early 90's. everything is a cycle!!!!

mark hoy
seattle, WA
6/10/2015 02:11 PM

  Right. Why spend the money here in North America ??--- when we can ship it far far away -- like all our manufacturing jobs. thanks a lot fellas

northern, IN
5/31/2015 08:14 AM

  screw loose somewhere with all these funds investing in ag land , markets crashing, will be the worse down turn ag has every seen , might make the 80's seem like the golden years