WIPHOLD in 2019 took up a 25% stake in AFGRI Grain Silo Company (SiloCo), a unique infrastructure type asset in the agriculture and grain value chain with stable, growing cash flows.
The investment is a core fit with our agriculture strategy and focus on the grain value chain and will result in future synergies with our existing activities.
AFGRI is one of South Africa’s leading agricultural services companies with more than 90 years’ experience and heritage in grain commodities and agriculture. AFGRI manages the storage facilities on behalf of SiloCo.
With 79 grain storage silos and bunker facilities and a current storage capacity of 4,7 million tons and growing, SiloCo’s aim is to enable the growth of the grain storage capacity in South Africa and on the continent and strengthen food security in the region. The grain storage facilities are located in farming areas that consistently have above average rainfall and crop yields and are also located along strategic grain import and export routes.
The investment generates returns that are well above current yields on infrastructure-type assets and generates an attractive and growing running yield.
Investment name: AFGRI Grain Silo Company (SiloCo)
Rationale for the investment: To participate in the agriculture value chain by leveraging storage infrastructure.