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Q: Fair Selling Price for pre-developed cranberry agriculture LAND ONLY in chile ( No Answer,   2 Comments )
Question  
Subject: Fair Selling Price for pre-developed cranberry agriculture LAND ONLY in chile
Category: Business and Money
Asked by: redtippey-ga
List Price: $100.00
Posted: 15 Aug 2006 20:37 PDT
Expires: 14 Sep 2006 20:37 PDT
Question ID: 756445
Wondering what a fair selling price would be for a couple thousand
acres of land, ONLY, currently producing cranberry concentrate as well
as sweetened dried cranberries (SCD's).  Not looking to sell the
actual cranberry business on the land, but wondering how to come up
with a fair market value for the land with the particular cranberry
business as the master tenant

This land is in Chile
Answer  
There is no answer at this time.

Comments  
Subject: Re: Fair Selling Price for pre-developed cranberry agriculture LAND ONLY in chile
From: romeohifi-ga on 17 Aug 2006 20:26 PDT
 
The only way to buy a piece land in Overseas would be if you are
willing to live there. Otherwise I would recommend buy it for a
dollar. The prolem with owning land in Overseas is that you run the
risk of people using it for there benefit and you will foot the bill.
It is very hard to find a good honest person to run your business or
to take care your land if your are not there to oversee it. Lets say
if someone decides to build a house on your land what will you do? Or
the person that you put in charge decides to sell some of your land
and take the money and runs with it how would you take care of that
problem? So you see it is always better to be on top of your business.
Take care.
Subject: Re: Fair Selling Price for pre-developed cranberry agriculture LAND ONLY in chil
From: myoarin-ga on 19 Aug 2006 14:40 PDT
 
Romeo,
I think you missed the point; Redtippey is asking about selling the
land and apparently continuing the business by leasing it back as a
tenant.

It seems that cranberries are a relatively new and growing agro-business in Chile:
http://www.actahort.org/books/446/446_23.htm

Since the land is probably not useful for anything else, the price
would be dependent on the estimated return from this use, based on
several variables:  estimates on the future market and price for
cranberry products; what effect further development of the business in
Chile will have  - availablity of land for expansion, etc.; and  -
most especially if the land is to be immediately leased back long term
-  what the terms of the lease would be, since they would determine to
some extent the land's value for the life of the lease.  This could be
complicated by offering lease payments in US$  - perhaps the currency
the business earns, and perhaps attractive to a buyer who anticipates
that the Chilean currency will decline in value to the dollar (but
maybe not).  In a new industry/branch of agro-business, the view into
the future is often short.  In this case, a buyer may consider and
argue that the land is only worth what the discounted value of the
lease payments is worth, not being willing to risk that it will have a
future value, i.e., that the cranberry business will have a future
after that, or maybe  - looking around at the possibly immense space
for expansion -  consider that at the end of the lease the competion
in the berry industry will have locked up enough land, so that the
market for his will be negligable.

That is not much help, I expect.
The old adage is that a fair price is that which a buyer and seller
agree to when neither is under obligation to buy or sell,
respectively.  That is pretty obvious, but if the present landowner
were a foreign entity, and the government were forcing out foreign
owners, as a seller, it would be in a weaker position.

Again not much help, but perhaps a little towards understanding that
without a great deal more information it will be very difficult to
privide a useful answer.

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