In 2019, WIPHOLD acquired a 25% shareholding in SiloCo, a unique infrastructure-type asset in the agriculture and grain value chain with stable, growing cash flows.This investment is a core fit for WIPHOLD’s agriculture strategy and will result in future synergies within its existing activities.
SiloCo has 85 grain storage silos and bunker facilities with a growing capacity that currently holds 4.9 million tons. The company’s aim is to enable the growth of the grain storage capacity in South Africa and on the continent, ultimately strengthening food security in the region. The grain storage facilities are located in farming areas that enjoy consistently above average rainfall and crop yields, and are located along strategic grain import and export routes. The facilities are managed by AFGRI, one of South Africa’s leading agricultural services companies, with over 100 years of experience and heritage in grain commodities and agriculture.
The investment generates returns that are well above current yields on infrastructure-type assets and offers an attractive and growing running yield.
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Investment name:
AFGRI Grain Silo Company (SiloCo)
Sector: Food & Agriculture
Shareholding: 25%
Rationale for the investment:
To participate in the agriculture
value chain by leveraging storage infrastructure
The company’s aim is to enable the growth of the grain storage capacity in South Africa and on the continent, ultimately strengthening food security in the region.
In 2019, WIPHOLD acquired a 25% shareholding in SiloCo, a unique infrastructure-type asset in the agriculture and grain value chain with stable, growing cash flows.This investment is a core fit for WIPHOLD’s agriculture strategy and will result in future synergies within its existing activities.
SiloCo has 85 grain storage silos and bunker facilities with a growing capacity that currently holds 4.9 million tons. The company’s aim is to enable the growth of the grain storage capacity in South Africa and on the continent, ultimately strengthening food security in the region. The grain storage facilities are located in farming areas that enjoy consistently above average rainfall and crop yields, and are located along strategic grain import and export routes. The facilities are managed by AFGRI, one of South Africa’s leading agricultural services companies, with over 100 years of experience and heritage in grain commodities and agriculture.
The investment generates returns that are well above current yields on infrastructure-type assets and offers an attractive and growing running yield.