534 Hectares in Cerro Largo (Aceguá): Immediate Rental Income and Strong Long‑Term Appreciation Potential
This 534‑hectare farm in Cerro Largo, near Aceguá, stands out as one of the most attractive investment opportunities in the region. It offers immediate income, a balanced crop‑and‑pasture operation, and strategic appreciation potential driven by major upcoming logistics improvements in eastern Uruguay.
With 200 hectares of cropland and CONEAT 129 soils, the property provides a solid productive base and a stable, long‑term leasing structure.
Current Returns: Reliable and Proven Income
The entire farm is leased and generates stable income from day one:
Grazing rent: USD 102 per hectare
Cropland rent:350 kg of soy per hectare on 200 ha
Total annual income exceeds USD 60,000, equivalent to a 2.6% cash yield based on today’s unusually low soybean prices.
This yield represents a cycle low. In normal market conditions, agricultural rents in Uruguay—especially on soils of this quality—tend to be significantly higher.
Land Appreciation
Uruguayan farmland has historically appreciated 3% to 6% per year, depending on region and soil type. Cerro Largo has traditionally been at the lower end due to logistics, but this is precisely what is beginning to change.
Combining:
2.6% annual rental income, and
3% to 6% annual land appreciation,
results in a total expected return of 5.6% to 8.6%, fully aligned with Uruguay’s long‑term farmland performance.
Why This Property Is Special in Cerro Largo
Although some soils in Cerro Largo are comparable to those in high‑performance agricultural regions like Soriano, rental values have historically been lower due to higher transport costs. This structural condition is now shifting.
Two major infrastructure projects will significantly enhance the region’s competitiveness:
Laguna Merín Waterway, opening a new transport corridor toward Brazil.
Brazil’s expanding railway network, designed to connect with this corridor and dramatically reduce grain transport costs.
Once operational, the region will benefit from:
Lower freight costs
Higher net returns for producers
Stronger rental values
Higher land prices
The current logistical disadvantage that moderates rents is expected to fade, positioning Cerro Largo as a region with substantial appreciation potential.
Investment Value
The price remains at USD 4,400 per hectare, which—according to local experts—is excellent for this area, especially considering:
High‑quality soils (CONEAT 129)
200 hectares of cropland
Immediate and stable rental income
Historical appreciation trends
Upcoming logistics transformation
This property offers:
Immediate, stable income
Diversified crop‑and‑pasture production
Competitive long‑term total returns
Structural appreciation potential
A strategic location in a region gaining importance
A standout opportunity to acquire productive land with income from day one and clear long‑term growth prospects.
Commercial Terms
**Price: USD 4,400 per hectare
3% commission
22% VAT on the commission**