The company has recently committed to a shift in direction of its focus. ProGreen will now be concentrating its resources exclusively on Baja California projects. At this time, we do not anticipate investing further in Michigan, because the opportunities in Baja are so much more compelling.
Over the past year ProGreen has developed a strong position in Baja California with significant contract assets through our strategic business arrangements. These include our JV agreements with Contel Inmobiliaria and with our anticipated real estate projects through our subsidiary, Procon Baja JV. The aim is to leverage our position in the direction of larger scale and longer term real estate development projects at the same time that we are beginning to monetize farmable land.
Here we summarize the status of our activities in Baja California.
LAND FOR AGRICULTURAL USE
We currently have approximately 14,000 acres under our control through joint venture agreements, of which we estimate up to 4,500-5,000 acres may be farmable, as follows:
- 300 Acres – first tract, 150 acres cleared and farmable with wells drilled, a proven abundance of water; Contel has commenced operations to begin growing produce for U.S. importers
- 1,900 Acres – second tract, of which we estimate 500-800 acres could be farmable; 11-mile access road has been completed
- 12,000 Acres – 3 year option to acquire this additional land, of which up to 4,000 acres could be farmable
- We are also working to acquire 1,500 acres adjacent to the first 300 acre tract, though this may take some considerable time, due to higher complexity involved with obtaining the title of this land
Some of the non-farmable land, could potentially be used for commercial and residential real estate in direct support of the farming operations and/or for the local economy and industry that could develop over time as a result of these operations.
REAL ESTATE DEVELOPMENT PROJECTS
- We are in advanced discussions for the potential acquisition of about 4,500 acres of oceanfront land; the intention is to develop a master plan and bring investors and developers into individual real estate projects, as described in our December 16 blog message:
- Opportunities identified for potential real estate investment projects in Ensenada; continuing further research
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