First investment in Iberia
March 2022
SLM Partners, an asset manager that invests in regenerative agriculture and forestry, has completed an investment in a 300-hectare property in Murcia, Spain that will grow organic almonds, pistachios and olives.
The first investment comes soon after SLM Partners launched a new closed-end fund – the SLM Silva Europe Fund – focusing on investments in a range of tree crops from forestry to orchards in selected EU countries. The Fund acquires or leases land, introduces ecological and organic management practices, and forges relationships with local operators who specialize in ecological management practices and wish to expand. The overarching objective is to develop a “Climate Positive” portfolio of assets that will deliver on Net Zero targets, while having measurable impacts on biodiversity and soil health. The target fund size is €250 million.
Given the critical importance of local knowledge and strong operator alignment for agricultural investments, SLM Partners established a partnership with a leading regenerative organic farmer in Murcia, Spain who had achieved impressive results on his existing 1,800-hectare property. The farmer was seeking to scale up his operation and apply regenerative practices on a larger area.
SLM Partners worked with this farmer to identify a suitable property and acquired the new 300-hectare property near Moratalla in February 2022. The property consists of existing almond and olive orchards, as well as bare land for planting new trees. 130 hectares of new almonds and pistachios will be planted during 2022. Through a partnership with this local operator, the property will be developed to grow organic almonds, pistachios, and olives, both rainfed and irrigated.
The partnership will focus on the implementation of regenerative practices including planting cover crops between tree rows, minimizing tillage, using composts and biological fertilizers, and planting hedgerows or pollinator habitats for integrated pest management. These systems can produce nuts, olives and other crops in a profitable way while storing carbon and improving soil health. By increasing soil organic matter, they also use water more efficiently. The entire farm will be transitioned to organic certified production, serving high-value organic markets in Europe.
“We hope this farm will become a showcase for regenerative organic production of tree crops in Spain, building on the track record of our local operating partner,” said João Roseiro, SLM Partners’ Agronomy Director for Iberia. “We will be measuring the impacts on soil health, carbon sequestration and biodiversity over the next 10 years.”
SLM Partners has been a pioneer in natural capital investing for more than a decade. Founded in 2009, it uses investment capital to scale up regenerative and ecological farming and forestry systems. In partnership with local operators, it invests in land and real assets, while delivering positive environmental impacts on soil health, water, biodiversity, carbon storage, and building resilience to climate change and other risks. The firm believes that we can only achieve truly sustainable financial returns if we are enhancing natural capital.
Since its establishment, SLM Partners has developed a strong track record in acquiring, developing, and operating rural land globally. It manages $200 million in capital across strategies in Europe, the USA and Australia. In November 2021, during the World Leaders’ Summit at COP26, SLM Partners joined the Natural Capital Investment Alliance (NCIA), becoming a part of an effort to mobilise $10bn (€8bn) in commitments towards Natural Capital across asset classes by 2022.