SORIANO ~ URUGUAY

SAN PEDRO DAIRY

Your a t t en t ion i s d rawn to the Impor tant Not i c e on the la s t page o f the t ex t .

Hugh CoghillFarms and EstatesSavills (L&P) Ltd

Lansdowne House, 57 Berkeley SquareLondon W1J 6ER

+44 (0) 207 016 3818 / +44 (0) 7967 555777hcoghill@savills.com

Contact Details:

Geoffrey McRaeGateway to South America - Argentina

Quartier Basavilbaso EdificoDomingo de Basavilbaso 1350(entre Av. Libertador y Juncal)Capital Federal C1006AAD

Argentina (0054) 11 52543415

geoffrey@gatewaytosouthamerica.com

Stephen HallFarms and EstatesSavills (L&P) LtdOlympic HouseDoddington RoadLincoln LN6 3SE

(0054) 11 66223644 / +44 (0) 7807 999089schall@savills.com

Risso, Soriano ~ 17km

Colonia ~ 135km

Montevideo ~ 235km

Buenos Aires ~ 140km direct line (approximately 2.5 hours travel)

Coordinates: -33.546903, -57.460728

SORIANO ~ URUGUAY

SAN PEDRO DAIRY

1042 HECTARE IRRIGATED DAIRY FARM

50-BALE ROTARY PARLOUR

SIGNIFICANT IRRIGATION RESERVOIR - 2 MILLION M3

6 RECENTLY INSTALLED ZIMMERMATIC CENTRE PIVOT IRRIGATORS

TURN KEY OPERATION WITH EXCELLENT MANAGEMENT IN PLACE

TOTALLING APPROXIMATELY 2575 ACRES(1042 HECTARES)

INTRODUCTIONSan Pedro Dairy Farm is currently owned by a group ofexperienced international New Zealand farmers and investorswho in 2007, after extensive research, acquired the farm. Thegroup analysed the opportunities in the area and opted forSan Pedro as the standout choice on the following keyselection criteria:

• proximity to leading milk manufacturers

• suitability for large scale water storage and the abilityto irrigate large portions of the farm

• soil types suitable for pastoral farming and alternativeland use options if required

• access to major road and transport links

SAN PEDRO DAIRY• proximity to suitably qualified labour and farmingresources.

THE FARMThe farm is situated in the south east of Uruguay which iswidely regarded as the best area for productive farm land inUruguay. Situated on a well maintained public road, SanPedro is situated approximately 1.5 hours drive time toColonia; the main town and port in the area andapproximately 2.5 hours drive time from the capital,Montevideo. Colonia has high speed boat connections (onehour) into Buenos Aires which sits on the opposite banks ofthe Rio del la Plata meaning travel from Buenos Aires to thefarm can usually be done within three hours by boat and car.

Buenos Aires airport (Ezeiza International Airport/EZE) hostsa comprehensive daily schedule of flights to and from mostinternational airports.

The land extends to a total of 1042 hectares and is situated ina single ring fenced block. Since purchasing the farm, theyhave developed what was a bare land extensive arable andstock farm into a modern and highly efficient dairy holding.

Currently 400 hectares are under centre pivot irrigators withthe potential to develop a further 250 hectares with futureinvestment.

Under irrigation they are producing 120-150kg dry matterper day. Soil analysis is available which show high indiceslevels.

Photograph of the irrigation system.

Photograph of the irrigation reservoir which sits centrally on the farm.

THE DAIRY BUSINESS Commissioned in 2008, a modern Wesfalia 50 balerotary parlour was built which currently milks in theregion of 1000 cows, at 300 cows per hour. The farmhas the potential to increase to two and half times thatamount with the land and milking facilities able toaccommodate 2500 milking cows. An up to datevaccination regime is in place with paperworkavailable from the vendors agent upon request.

The herd followers are also bred and reared on farm.Uruguay has a long history of using artificialinsemination and New Zealand genetics are availablein the country. Uruguay has a significant market fordairy cows with current values being below the costsof other leading dairying nations. 2012 average valuesfor a dairy cow purchased locally are in the region ofUS $1500.

Current and future yield projections and costings areavailable from the vendors agent upon request.

THE IRRIGATION SYSTEMThe irrigation system has been developed since the property was purchased by damming the streamthat runs through the farm, meaning the dam has over2 million m3

�of irrigation facility.

The facility is fed from 53 square kilometres of run-off and government legislation in place to protectagainst any future upstream reservoirs being builtwhich compromises operational downstream facilities.

Fed from the reservoir there are 6 Zimmermaticcentre pivots irrigating 400 hectares.

A new power main has been erected with 4transformers on the farm. The ability to increase theirrigated area of the farm is high with 3 further pivotsplanned for the coming years. Further details areavailable.

Photograph of the land adjacent to the milking parlour.

No warranty can be given by Savills orGateway to South America Uruguay as tothe accuracy of these reports. It should notbe assumed that the property has allnecessary planning, building regulation orother consents and Savills and Gateway toSouth America Uruguay have not testedany services, equipment or facilities.Purchasers must satisfy themselves byinspection or otherwise.

Particulars dated: October 2012

MISCELLANEOUSOn farm there are 4 houses for on farmstaff and a grassed landing strip forlightweight aircraft. There are also high speedinternet connections in all the houses andfarm office.

METHOD OF SALE San Pedro Dairy is offered freehold for sale asa whole by Private Treaty to include allfixtures and fittings and livestock unlessspecifically excluded in these particulars.

VIEWING ARRANGEMENTSViewings to be arranged via Gateway toSouth America.

IMPORTANT NOTICE

Buyers PremiumPayable by the purchaser in addition to thegross payment to the vendor is a buyer’spremium 3% calculatetable on the grossamount plus VAT/IVA. This will be payableat the point of exchange of contracts.

Savills and Gateway to South AmericaUruguay and their clients give notice that:

1.They have no authority to make or giveany representations or warranties in relationto the property. These particulars do notform part of any offer or contract and mustnot be relied upon as statements orrepresentations of fact.

2.Any areas, measurements or distances areapproximate. The text, photographs andplans are for guidance only and are notnecessarily comprehensive. Where Savillsand Gateway to South America Uruguayhave relied on third party reports, thesereport can be made available on request.

Departamento de Soriano

Estancia ‘SAN PEDRO’

Photograph of the 50 bale parlour.

Progreso

La Paz

Santa Lucia

San Josede Mayo

Jose E. Rodo

Cardona

Florida

La Plata

Zarate

Campana

Mercedes

TrinidadDolores

Paysandu

Tacuarembo

Durazno

Montevideo

Buenos Aires

Rio de La Plata

Colonia delSacramento

2

14

14

8 9

2

2

111

3

5 6

6

7

1

26

26

5

5

3

3INTRODUCTION TO URUGUAY

THE GOVERNMENTThe Uruguayan government is a demographic system elected on a 5 yearly term. Thecurrent president is Jose Mujica of the “Broad Front” party which is a left leaning coalition.They were elected in 2009 with the next election due November 2014. There iscompulsory voting in Uruguay. Mujica has voiced his strong support for the dairying sector.

The agriculture minister is Tabare Aguerre who is non-partisan, agriculturally trained andpersonally farms rice in the east of Uruguay. He has been widely reported to supportforeign investment into the agricultural sector.

THE ECONOMIC STRUCTUREDeloitte’s “Uruguay: Tax and Investment Profile” comments that since the return todemocracy in the mid 1980’s, Uruguay stands out on a regional level for political, social andeconomic stability. Uruguay offers investors free transfer of capital and goods, a freelyexchangeable currency (unlike Argentina), no restrictions on the import of goods, and nodiscrimination between local and foreign investors.

Whilst most economies contracted in 2009, Uruguay’s GDP grew by 2.9%. In 2010 thegrowth was circa 8.3% and unemployment is low at below 7%. The major exports are beef,rice, dairy and cereals with leading export markets being Brazil, Argentina, China, US andthe EU. Uruguay holds a Standard & Poor’s investment rating of BBB putting it in the samesovereign credit rating category as Brazil, Russia, India and South Africa.

For Identification Purposes Only. Not to Scale.

Photograph of one of the internal farm tracks.

Mark Riley Design - 07747 037222