Cosan Drums up Agro RE Funds

Cosan has raised $150m from foreign private investors to add to $35m of its own cash that funds its Radar agricultural real estate venture. The Brazilian sugar and ethanol producer follows in the footsteps of BrasilAgro and other firms who buy raw plots to develop as farmland for possible resale. Cosan will own 19% and operate Radar, which aims to develop sugar cane, soy and other crops in an attempt to hedge exposure to sugar and ethanol prices. A second fundraising is planned within the next two years, Cosan says. CFO Paulo Diniz told LatinFinance in June that Radar would eventually target about $500m.