Toesca broad agricultural strategy and purchase of 800 hectares of land for European hazelnut project

Toesca AGF has expanded its agricultural strategy by acquiring an 800-hectare property in Chillán, Ñuble Region, to develop a European hazelnut project. The acquisition marks the third asset under the company’s recent agricultural investment plan, which has already secured over $50 million in commitments across three regions of Chile. The new property, known as Ñuble Alto, will see planting operations begin in the third quarter of this year, with production expected to start around 2030 based on the species' growth cycle. The purchase was announced just days after Toesca AGF had confirmed its plans to acquire Frontal Trust, further demonstrating the firm's active expansion within its business portfolio. The 800-hectare field is part of the Toesca Permanent Crops II fund, which aims to build a diversified portfolio of long-term agricultural assets open to both national and international investors. While the exact value of the transaction was not disclosed, the company emphasized its commitment to sustainable and high-standard agricultural projects. Augusto Rodríguez, a partner and head of Farmland at Toesca, explained that the decision followed an extensive evaluation process. He noted that the site was chosen for its exceptional conditions suitable for developing a high-standard European hazelnut project. Factors such as location, scale, water availability, topography, and agroclimatic conditions were cited as key reasons behind the choice. These factors contribute to the potential productivity of the land, according to Rodríguez. Matías Guajardo, co-portfolio manager of Farmland at Toesca, added that the experience gained in the Ñuble Region supports the decision. He pointed out that previous European hazelnut projects in the area have demonstrated the region's competitive advantages when paired with appropriate agronomic design and operational standards. Guajardo highlighted favorable cold hours, thermal conditions during growth periods, water availability, and mechanization potential as contributing factors to the success of these projects. Additionally, he mentioned the technical knowledge developed in variety selection, planting density, irrigation, and nutritional management, which has significantly reduced risks associated with new orchards. Toesca began its entry into the agricultural sector in 2021 with the launch of a specialized fund focused on fruit-growing projects and an asset in the Maule Region. This initial phase led to the second stage of the company's strategy through the creation of Toesca Permanent Crops II, a vehicle designed for a ten-year investment horizon aimed at building a diverse portfolio of long-term agricultural assets. Since December 2024, the company has been working alongside Astarte Capital Partners, a British firm specializing in natural capital, to enhance its agricultural expertise with international capabilities. Rodríguez framed the investment as part of a longer-term vision for the sector. He stated that agriculture, particularly fruit-exporting projects, represents an opportunity to create real, long-lasting assets with competitive returns, low correlation with traditional financial assets, and a management approach focused on preserving and developing asset value. This strategic move underscores Toesca’s ongoing commitment to expanding its presence in the agricultural industry through well-planned and sustainable initiatives.