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Structured Agro Real Estate Positioned as Competitive Alternative to Commercial Real Estate at AAREDS 2026

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AAREDS discussions highlighted how structured Agro real estate investment— such as oil palm, coconut, and cocoa plantations — can deliver long-term yield performance, profitable returns, and asset appreciation that exceed traditional commercial real estate returns

 

 

At the African Agro Real Estate Development Summit (AAREDS) 2026, industry leaders converged around one central conclusion:

Structured agro real estate is emerging as a competitive alternative to traditional commercial real estate.

Discussions highlighted how structured agro real estate — including oil palm, coconut, cocoa plantations, and other cash crops — can deliver long-term yield performance, profitable returns, and asset appreciation that rival, and in select emerging markets exceed, traditional commercial real estate returns.

But the message was not about speculation.
It was about structure.

The initiative received institutional validation from the Group Managing Director/CEO of AG Mortgage Bank, who emphasized the importance of structured financing frameworks in de-risking agricultural real estate and making it accessible to serious investors.

He noted that when land documentation, compliance, and capital structure are aligned, agro real estate becomes financeable, scalable, and bankable.

 

From High-Risk Farming to Structured Asset Class

Historically, large-scale agriculture struggled to attract serious capital for two reasons:

  1. Inappropriate financing models
  2. Weak governance and fragmented regulation

Abubakar Lawal, the group managing director of GTI, emphasized that traditional bank lending does not align with agriculture’s long-term timelines and volatility. As a result, large projects often remain underfunded or poorly structured.

According to him, Assetrise Limited is redesigning agricultural investment by introducing:

  • Structured funding frameworks
  • Transparent governance systems
  • Scalable project design
  • Reduced investment friction

The long-term ambition includes potential capital market participation — signaling a pathway toward institutional credibility and public-market readiness.

This marks a shift from informal agro participation to structured, investable real assets.

Special Purpose Vehicle for Profitable Oil Palm Plantation in Africa

During the summit, the Group Managing Director of Assetrise Limited and visionary convener of AAREDS provided insight into the architecture behind the Palmrich model — Assetrise’s structured oil palm agro real estate framework.

He explained that Palmrich was developed to eliminate the traditional opacity associated with agro investments by integrating land documentation, plantation management standards, and governance oversight into a sustainable structure. According to him, structured ownership of oil palm plantations under the Assetrise framework is designed to be secure, credible, and performance-driven — accessible to both local investors and members of the diaspora seeking long-term, land-backed assets.

He further revealed the launch of Palmrich Phase 9, developed as a special-purpose vehicle. The new phase is structured with a Certificate of Occupancy (C of O), reinforcing formal land title security and demonstrating a commitment to institutional-grade documentation — a move intended to deepen trust among buyers and prospective investors.

 

Governance: The Missing Link in Agro Real Estate Structure

Former SEC Director-General Mary Uduk reinforced that agriculture must be treated as a regulated investment ecosystem — not simply a production activity.

She identified three non-negotiables for investor confidence:

Traditional Institutions as Investment Stabilizers

The Oba Olufolarin Olukayode Ogunsanwo, THE ALARA OF ILARA, representative, underscored a critical point often ignored in investment models: land legitimacy.

Traditional authorities serve as:

  • Custodians of land heritage
  • Mediators of land disputes
  • Enablers of secure land access
  • Protectors of community stability

Without traditional alignment, large-scale agro projects face operational risk, social friction, and potential disruption.

Structured agro real estate integrates community trust into the investment architecture.

 

Infrastructure: Making Agriculture Investable

During thefirst panel session, Lagos State commissioner for agriculture and food systems, Hon Abisola Olusanya & Engr Leye Akinola, Hon Commissioner for Agriculture and Food Systems, Ondo, outlined how the state is shifting from production-focused agriculture to infrastructure-driven food systems.

Under the administration of Babajide Olusola Sanwo-Olu, Lagos is developing:

  • Large-scale food logistics hubs
    • Cold-chain infrastructure
    • Storage systems
    • Structured off-taker frameworks

    This transition reduces waste, stabilizes prices, and improves predictability — all critical for investment-grade agriculture.

    Agriculture becomes bankable when logistics become reliable.

    Watch full video: https://www.youtube.com/live/W6quiwQjru0?si=4rBNTsLzggTWIDLU

     

     

    Research, Regulation and Replication: The Institutional Backbone of Structured Agro Real Estate

    The second panel session at AAREDS shifted the conversation from positioning to proof — demonstrating how universities, research institutes, financial institutions, and regulators are aligning to transform agro real estate into a structured, investable asset class.

  • University-Backed Land, Data and Replicable Innovation

    Representing the Federal University of Agriculture, Abeokuta (FUNAAB), the Director of the World Bank Centre of Excellence in Agricultural Development and Sustainable Environment disclosed that the university controls over 10,200 hectares of mapped agricultural land — one of the largest institutional land holdings in the region.

    He explained that FUNAAB’s partnership with Assetrise was not symbolic. It was performance-based.

  • The university allocated land to test whether structured agro models could deliver measurable results. According to him, the results validated the model. More importantly, the collaboration introduced smart agriculture innovation systems designed to engage a new generation of technology-driven students.

    FUNAAB has also mapped agricultural suitability across the southwestern region, enabling land users to digitally determine what crop is best suited for specific soil conditions. This reduces crop mismatch risk — a key factor in failed agro investments.

    The implication: land selection without data is speculation. Structured agro real estate begins with mapping and research.

     

    NIFOR: Why Local Genetics Determine Yield Reality

    The Nigerian Institute for Oil Palm Research (NIFOR) addressed one of the most critical risk factors in oil palm investment — planting material.

    The institute emphasized that many foreign clonal varieties underperform when transplanted into different ecological environments. By contrast, NIFOR’s locally adapted materials are developed for Nigerian soil and climate conditions, reducing production volatility.

  • As a government-regulated institution, NIFOR’s seed pricing is ministerially controlled, ensuring affordability and standardization. More importantly, the institute underscored that yield outcomes depend not just on promises but on cultivation technology and material adaptability.

    For investors, the message was clear:

    Unverified genetics create performance risk.
    Research-backed planting material reduces it.

     

    Cocoa as a Long-Duration Asset

    The Cocoa Research Institute of Nigeria (CRIN) reinforced the long-term asset argument.

    With over 120 research professionals, including more than 30 PhD holders, CRIN has developed high-performance cocoa varieties, including an 18-month cocoa that significantly shortens time-to-yield compared to traditional five-year maturation cycles.

    Beyond early production, cocoa plantations can preserve land value for 80 to 100 years when properly managed, offering both recurring agricultural yield and long-term asset durability.

    The model presented was not short-cycle farming — but land preservation combined with structured production.

     

    BRG: Escrow, Titles and Anti-Fraud Architecture

    The President of BRG addressed one of the sector’s most sensitive issues — fraud within agro land banking.

    He identified the core problem: developers often sell projections rather than secured assets.

    In response, the Assetrise–BRG consortium model introduces:

    • Government-aligned land documentation
    • Proper titling processes
    • Escrow-backed transactions
    • Structured land banking governance

    The objective is to eliminate informal land sales practices and create institutional-grade credibility within agro real estate.

     

    LASCORDA: Coconut Value Chain and State Support

    The Lagos State Coconut Development Authority (LASCORDA) reinforced the importance of state-backed production support.

  • The agency currently operates multiple coconut formations across Lagos State and produces viable hybrid, tall, and dual cultivars. To stimulate production, the agency distributes subsidized — and in many cases free — seedlings to farmers.

    With Nigeria ranked 18th globally in coconut production and Lagos contributing the majority of domestic output, the opportunity lies not just in cultivation but in structured value-chain integration.

     

    Capital flows toward structure.

     

    Why Corporate Organizations and Cooperatives Are Paying Attention

    For corporate organizations and cooperatives seeking profitable, long-term investment options for staff or portfolio diversification, structured agro real estate presents:

    • Recurring biological yield
    • Commodity exposure
    • Land-backed asset growth
    • Regulatory-aligned investment models
    • Community-backed land security

    Unlike speculative farmland sales, structured agro real estate integrates:

    Policy.
    Research.
    Governance.
    Infrastructure.
    Institutional finance.

    This is what differentiates durable investment from short-term promotion.

  • The Assetrise Limited and BRG consortium recently announced the launch of a 1,000-acre structured agro real estate project

    The President of BRG praised Assetrise for establishing a safe, transparent investment framework that allows the general public to participate confidently in agro real estate. He highlighted that the nation’s largest realtor community is grateful for the partnership with Assetrise and encouraged other developers to follow this credible, structured pathway, reinforcing standards of governance and trust in the sector.

    The Assetrise Positioning

    Throughout the summit, Assetrise Limited was presented as a model of how agricultural land development can be:

    • Structured
    • Transparent
    • Compliant
    • Scalable

    By integrating land, governance, research-backed inputs, and institutional financing alignment, Assetrise is positioning agro real estate as a legitimate, structured asset class for corporate and cooperative capital deployment.

     

     

    The Bigger Signal

    AAREDS 2026 did not argue that agriculture replaces commercial real estate.

    It argued that structured agro real estate — when properly governed, financed, and aligned with policy — deserves to sit alongside it as a serious capital allocation strategy.

    For organizations seeking long-term yield performance with tangible asset backing, the conversation has shifted.

    The question is no longer whether agro real estate is viable.

  • The question is whether it is structured correctly.

     

     

    Corporate organizations, cooperatives, and institutional stakeholders seeking structured agro real estate participation can engage directly with Assetrise to explore compliant, scalable investment frameworks aligned with the standards discussed at AAREDS.

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