Photo: CBREAIM | 21 May 2026SDG Farmland Fund atrengthens Iberian portfolio, cquires 400-Ha. Olive Orchard in Portugal with support from CBRE
By Lynda Kiernan-Stone
Van Lanschot Kempen’s SDG Farmland Fund, a global institutional investor focused on natural capital strategies and real estate, has acquired Panasqueira, a 400-hectare (988.4-acre) irrigated olive growing operation located in Faro do Alentejo, Portugal.
Supported by global real estate consultant CBRE, the completion of this acquisition, which will be integrated into the fund’s existing Rio de Azeite platform, further strengthens Van Lanschot Kempen’s diversified and resilient permanent crop portfolio in the Iberian Peninsula.
The property, which produces high-quality olives for the production of extra virgin olive oil, is strategically located within the irrigation perimeter of Portugal’s Alqueva region, a highly important hydraulic structure in southern Europe. This location, together with the asset’s scale and water availability, make it particularly attractive for institutional strategies focused on capital preservation, income stability, and long-term sustainability.
“Access to water is a critical component of agricultural resilience,” stated Van Lanschot Kempen. “The Alqueva irrigation system draws on a reservoir with high storage capacity and long-term contractual security. This underpins production, even during periods of prolonged drought.”
On a day-to-day basis, the Faro do Alentejo orchard will be overseen by an experienced local team with a successful record of operating comparable olive orchards in the area, according to Van Lanschot Kempen, who also explained that by integrating this new asset into the Rio de Azeite platform, the fund can benefit from operational synergies and shared expertise.
Furthermore, growing the estate from 900 hectares (2,224 acres) to 1,300 hectares (3,212.4 acres) enables greater efficiency in farm management, optimized usage of infrastructure, and consistency in agronomic practices across assets in the region while still maintaining standards of responsible stewardship.
The asset will also be fully integrated into SDG Farmland Fund’s sustainability framework that applies strict requirements for embedding regenerative farming methods through tailored implementation plans and measurable benchmarks targeting better soil health and healthy agricultural products such as zero-residue olive oil.
Such production practices to be implemented at Panasqueira include the usage of grass cover to protect soil structure and reduce erosion, limiting heavy machinery traffic to prevent soil compaction, employing biofertilisers, and using drip irrigation systems to optimize water efficiency.
Likewise, several conservation areas on the farm have been identified where biodiversity will be monitored and actively managed.
“This acquisition reinforces our Rio de Azeite platform and enables us to implement regenerative and environmentally responsible farming practices at scale, in line with an investment model that prioritises sustainability, environmental impact and productive resilience,” said Richard Jacobs, head of farmland investments, Van Lanschot Kempen Investment Management.
CBRE, which acted as lead advisor on the transaction, explained that the deal was structured through the sale of the asset-owning company, resulting in an efficient execution that aligned with Van Lanschot Kempen’s strategic objectives.
The institutional scale of this transaction, CBRE’s role as lead advisor, and the aforementioned deal structure also reflect how ag investment in the region has developed.
“This transaction highlights the maturity that Iberian agribusiness is reaching as a destination for institutional capital,” said Manuel Albuquerque, head of agribusiness for southern Europe, CBRE.
“The combination of high-quality agricultural assets, established irrigation infrastructures such as Alqueva, and a clear orientation towards sustainability places the Iberian Peninsula in a leading position internationally for investors specialised in natural capital, and increasingly also for more generalist investors.”
Indeed, the Iberian Peninsula saw €1.2 billion (US$1.4 billion) in institutional investment in 2025, marking a 50 percent increase over the previous year, according to CBRE. Of this total, nearly €600 million (US$697 million) was in land purchase and sales transactions; €300 million (US$348 million) was in debt and refinancing structures; and another €300 (US$348 million) was in M&A transactions.
Indicative that the 2025 results were not just an outlier, the record of the past four years shows a stabilized market, with €1.2 billion (US$1.4 billion) posted in 2022, then €2.2 billion (US$2.55 billion) in 2023, followed by a period of moderation in 2024, before rebounding in 2025, positioning the market for continued growth in 2026 with sustained activity and greater visibility.
“In recent years, the agricultural sector has become more professionalized, facilitating the entry of institutional investors,” noted CBRE. “The interest the sector is generating in the investor community is based on the attractive returns it offers and on the possibility of developing diversified portfolios, which minimizes volatility and reduces the risk/return ratio of their portfolios.”
