Singular Asset Management SGIIC, in collaboration with Iberian Smart Financial Agro (ISFA), has launched Cultiva Iberia SCR, an innovative investment project focused on the development of sustainable agricultural operations using the latest technologies.
Cultiva Iberia emerges in a global context of sustained growth in the demand for healthy foods, while water restrictions in other key producing regions such as the United States enhance the competitiveness of production on the Iberian Peninsula. This combination creates a key strategic opportunity for the development of high-tech agriculture with clear advantages in costs, quality, and market access.
Among the factors strengthening the project’s appeal are the strong global demand for nuts and berries, the aforementioned competitive advantages of Iberia compared to other regions, high entry barriers due to the required capital, and marginal cost reductions thanks to experience in mechanization and crop technification.
Competitive advantages of almond, pistachio, and blueberry
By crop type, almonds on the Peninsula offer a structural advantage over California with an estimated profitability of 12%. Pistachios, as a complementary crop, allow operational synergies with an approximate profitability of 13.5%. Blueberries stand out for their high profitability, reaching close to 20%, although they require a higher initial investment and advanced logistics, including cold chain management.
ISFA, the entity responsible for project development, has experience managing over 7,000 hectares of similar crops, with an investment exceeding 250 million euros. The ISFA promoter team has a solid track record in agribusiness, energy, and private equity sectors, with notable geographic diversification capabilities.
The project’s strategy focuses on the development of high value-added crops—specifically almonds, pistachios, and blueberries—in strategic regions of Extremadura, Andalusia, the Ebro Valley, and Portugal’s Alentejo. The selected farms will range in size from 30 to 500 hectares, requiring only 6,000 cubic meters of water per hectare, representing highly efficient water usage.
With a fundraising target of 30 million euros, the Cultiva Iberia SCR vehicle will be established as a Venture Capital Company (SCR), classified under Article 8 of the sustainability regulation, aimed at investors seeking investment opportunities in the agri-food sector and attractive returns through sustainable alternatives.
The investment will be structured through six companies, combining two complementary business models: the OPCO model and the PROPCO model. The OPCO model is based on long-term land leasing, with direct investment in the crop, while the PROPCO model involves acquiring land as well as agricultural development. The project’s main focus will be the OPCO model on “greenfield” projects, meaning starting from scratch.
The project’s estimated return is a net IRR of 14% with a net return multiple of 2.5x the investment. The investment timeline covers the period 2025–2027, with exit or divestment planned between 2032 and 2035.
Regarding risk management, the project relies, besides crop diversification, on geographic diversification as a protection mechanism, the use of advanced irrigation and agricultural management technologies, formalization of forward contracts, and obtaining quality certifications. Automated processes and continuous training programs will also be implemented to minimize operational risks and maximize efficiency.
Victoria Diez Pérez, Private Equity Product Manager at Singular AM, highlighted: “With Cultiva Iberia SCR, we seek to offer our investors and clients a unique opportunity to participate in a sustainable agricultural project with high added value and a strong focus on operational efficiency, as well as to diversify their investments. We leverage the competitive advantages of the Iberian Peninsula, such as water scarcity in other producing regions and growing global demand for healthy foods, to create a profitable and environmentally responsible investment. Our goal is to maximize the profitability of our product offering while maintaining high sustainability standards and controlled risk.”
About Singular Bank
Singular Bank is a solid and experienced Spanish bank that aims to help its clients define and achieve their life goals through their finances, offering tailored tools and solutions adapted to each client’s needs and expectations, through different service models, free from conflicts of interest and with a wide variety of products and services.
It is composed of a team of over 400 professionals, 17 offices (located in Madrid, Barcelona, Bilbao, La Coruña, Valencia, Málaga, Zaragoza, Murcia, Sevilla, León, and Las Palmas), and more than 170 bankers and financial agents managing 14.345 billion euros in client assets.
Additionally, it has the support of a leading global investment group, Warburg Pincus, with more than $120 billion in assets under management and over 55 years of experience. Warburg Pincus focuses exclusively on growth investing and has recognized expertise in investments in Europe.
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