Capital growth. Current income generation. That is what real estate investment should produce in financial terms. It is the reward received for the sensibly-managed risk that an investor takes. Real estate is a real asset. It is tangible. You know where it is, and what it is.
Historical returns have shown that real estate appreciates over time. And, the current cash return can allow an investor to achieve its targets and satisfy current obligations. Real estate is an integral part of an investor’s portfolio. It is also an integral part of business and of family life.
We need it. We use it. We can benefit from investment in it.
It is one of the oldest occupations of society. Agriculture, growing food to satisfy our hunger. Agriculture investments can help solve major issues such as climate change, societal inequality, and endangered biodiversity. Farms are carbon sinks. Proper carbon sequestration (removal of carbon dioxide from the atmosphere and storing it as organic matter in the soil) helps mitigate climate change. A growing world population means we need to produce more food. Biodiversity is critical to maintain, and agriculture has a role to play.
So, why invest in agriculture. Because investors can achieve market risk-adjusted returns, create value, and manage risk over the investment horizon. This can be achieved not only on a sustainable environmental basis, but also on a sustainable societal basis and with good governance. It truly covers all of the concepts of E S G (Environmental, Social, Governance).
We believe in it. The world needs it. Hunger can only be eliminated by it. It is “agritech”. Agritech is using new technologies, digital infrastructure, better-adapted bio-processes, to improve the efficiency and output of agriculture. Food production for humans and animals requires new technologies to enable us to produce more food in less space with fewer inputs. It is, in other words, Smart Agriculture. As our population grows and our resources reduce, we need to get Smart. Smart Agriculture.
Some examples of Smart Agriculture are insect farming to produce proteins. Cloud-based IT (GPS) to collect, process and analyze data to make smarter farming decisions. Using robotics. Using bees and other insects instead of potentially-toxic substances to fertilize and enhance the growing process.
Making agriculture better for humans and animals. Boosting harvests while reducing costs, waste and carbon footprint.