We Bought The Land Before The Growth Arrived

Hey guys, Mikkel here,

Over the past week or so, I sent out a couple of emails to all members of the Expat Money community, so if you’re new here, welcome.

If you read those emails, you know this is Part 1 of a two-part series. If you didn’t, now you do.

Anyway, let’s get right to it.

Though originally from Austria, my partner Markus Amann has spent well over a decade living full-time in Paraguay and has become one of the country’s leading real estate developers.

Over the years, Markus has led the development of projects ranging from hotels and residential towers to Bosque Lagos, a first-of-its-kind residential community complete with full-scale suburban-type amenities.   

While Markus developed projects in and around Asunción and Nueva Asunción, he also bought up millions and millions of dollars' worth of what most people would have called “farmland.”

Markus didn’t see farmland. 

He saw the raw material for what would one day be essential to Paraguay's future. 

After working closely with Markus for the past several years, he's become a good friend of mine, and I can tell you his understanding of the Paraguayan real estate market is second to none.

His combination of experience, market knowledge and early conviction is exactly why I’ve paid such close attention to the land he has been accumulating.

That land is what we are going to discuss today.

Markus and I launched a co-owned real estate collective that now controls approximately 328,000 square metres (81 acres) of strategically positioned land in Nueva Asunción, which is directly across the river from Paraguay’s capital city, Asunción.

If I were talking to a friend at a dinner party, I would describe the venture like this:

“It’s a private land-banking collective built around a specific portion of the land Markus and I control in and around greater Asunción. We believe Paraguay’s industrial, commercial, and residential growth will naturally move toward this area. I already have seven figures of my own capital invested, and I have committed to organizing $10 million USD of capital for this before the end of 2026. The collective is already nearly 60% subscribed, with approximately $1 million USD from my network of Private Clients flowing into it each month”.  

(This is where the ears begin perking up, by the way).

The basic idea behind land banking is simple: buy up land early and eventually sell it at a much higher price to a party who needs it for a specific purpose.

You don't necessarily need to know what exactly the land you own will eventually become, be it housing, commercial space, an industrial park, a logistics corridor or otherwise.

You only need to know the land will eventually be in demand by a well-capitalized operator who needs it.  

That is the basic thesis behind the collective that Markus and I launched together.

I have spent more than 25 years travelling, investing and looking at opportunities around the world, and needless to say, I don't allocate seven figures of my own personal capital (nor do I discuss with my clients about doing so) unless the relationship between the potential downside and potential upside is compelling enough to justify taking the risk (remember, all investment contains risk).

The fact that I have invested that amount of my own money doesn't mean you should invest your own, and there is absolutely no guarantee our thesis will play out the way we believe it will. 

That said, this is a high-conviction play, and the basis of our thesis is already proving correct, as some of the biggest “growth unlocking” infrastructure developments we were banking on are already in place.  

For decades, Asunción had an obvious geographic problem.

The city was growing, but the Paraguay River effectively prevented it from expanding naturally westward.

Instead, development kept pushing east, northeast, and southeast, eventually stretching 30 or 40 kilometres from the capital. 

Meanwhile, massive amounts of largely undeveloped land sat directly across the river.

The problem wasn’t the land across the river itself; had it been easy to reach, this land would have been the obvious choice for the development that ultimately was forced to push further outwards. 

The problem was getting there.

Historically, reaching what is now Nueva Asunción meant taking a long detour across a bridge on the other side of the city, and depending on traffic, a journey that looked incredibly short on a map could take close to an hour and a half. 

So while Asunción continued growing further and further outward in other directions, the land directly across the river remained underdeveloped.

Markus recognized what was happening years before there was even discussion about building the infrastructure required to “close the gap”, and made calculated bets that it was only a matter of time until the underutilized, hard-to-access land across the river from the capital city would be prime for development.  

Then, in 2024, the Héroes del Chaco Bridge opened, creating a direct connection between Asunción and Nueva Asunción and, with it, closing the gap.  

Land that had previously required a lengthy detour through the other side of the city to access was now accessible from the capital in less than 10 minutes. 

This bridge removed the biggest obstacle that had prevented development from flowing naturally across the river, and the land that had always been geographically close to the capital became practically close to the capital.

Of course, improved access to land only becomes truly valuable when enough economic growth creates demand for what that land can eventually become…

Paraguay is rapidly developing into a more productive and industrial economy, driven in large part by the natural advantages it already possesses.

Abundant, reliable, and cheap energy is a fundamental element of an industrial economy, and Paraguay has it at an extraordinary scale thanks to its enormous hydroelectric generating capacity.

For this reason (among many others), well-capitalized businesses worldwide are now looking to Paraguay as a top contender for establishing energy-intensive operations.

There is substantial evidence behind that statement, and I am going to dedicate Part 2 of this newsletter series to exactly that because the second side of our investment thesis has very little to do with the land itself - it has to do with what is happening around it.

We’ll get into the weeds of that tomorrow. 

For today, I want to stay focused on Nueva Asunción and the land itself.

We don't have to sit around imagining what development on the other side of the river might eventually look like. It already started.

In the relatively short period since the new bridge opened, roads have been paved, and an enormous amount of new development has started taking shape throughout Nueva Asunción, including a new Ramada hotel, town hall, football stadium and several major residential communities at various stages of development, including one spanning approximately 474 acres.

None of that guarantees our investment thesis will ultimately play out the way we expect.

But we're also no longer looking across the river at empty land and saying, “One day, people might start building here.”

2012 = Markus begins positioning himself by buying up land in Nueva Asunción. 

2024 = The “growth unlocking” bridge opens.

2024 - 2026 = More and more physical infrastructure development starts appearing.

Present Day: Our collective owns the land positioned around the current and anticipated growth. 

A massive pricing gap currently exists between land in Asunción and the land we own in Nueva Asunción on the other side of the river. 

Our thesis is that as accessibility improves, infrastructure continues arriving, and Nueva Asunción develops into a genuine extension of the capital, the pricing disconnect will narrow. 

That is ultimately what our collective is positioned to benefit from.

Our land holdings were historically of little value because they were difficult to access, but with the accessibility issue resolved, our land is no longer overlooked by large-scale operators who don’t want to keep building 40 km+ outside the capital city.

Growth consumes land.

We own the land where the next wave of growth will logically go.

Now, there is only so much of this I can adequately explain to you in an email.

If you are a wealthy member of our community and any of what I've shared with you today has piqued your interest, set aside 30 minutes, sit down somewhere without distractions and watch this presentation here from beginning to end.

Markus will pull up the maps and show you the land we control, where it sits relative to Asunción, the new bridge, and the surrounding developments, what has already been built around us, where new infrastructure is moving, and break down in detail why we believe the land inside our collective is positioned for meaningful long-term appreciation. 

Once you actually see the geography, I think the thesis becomes considerably easier to understand.

You'll also see the assumptions Markus and I are making, what would need to happen for our thesis to play out as we expect, and the risks you’d be taking if you were to deploy capital with us.  

As I mentioned above, our collective is nearly 60% subscribed, and recently, we've had inflows of approximately $1 million USD per month.

If this level of participation continues at its current trajectory, we expect the collective to be fully subscribed before the end of this year (2026).

Before I say anything else, I want to be very clear again that the invitation I am extending to you today to watch the presentation is only open to select high-net-worth members of our community. 

Generally speaking, you will be required to meet certain income, net worth, or financial sophistication requirements in order to participate in this collective.

Before viewing the presentation, you will be redirected to a page where the qualifications for your potential participation will be listed. In order to access the presentation, you will have to confirm “yes” to the listed requirements in order to access and view the presentation.

If you watch the presentation, decide you want to investigate further and eventually wish to participate, every prospective investor must also complete our full KYC and AML process before being accepted.

After you have watched the presentation in full, you can email my personal assistant, Michelle, if you’re interested in learning more about this opportunity at [email protected].

Michelle will organize a private meeting between you, me, and Markus to further discuss the opportunity and your possible participation. 

HIGH-NET-WORTH INVESTORS CAN WATCH THE PRIVATE PARAGUAY LAND PRESENTATION HERE.  

Although this opportunity is restricted to wealthy investors, Paraguay Potential goes out twice a month, and I regularly share other projects and opportunities for those with different risk tolerances and capital levels. 

Most projects I bring to our community don't require you to be wealthy to participate.

Participation in this collective does. 

Stay tuned for Part 2 of this special newsletter series tomorrow.

Speak soon,
Mikkel

PS. Last week, I reintroduced a project to our community that is breaking ground in Ciudad del Este (Paraguay’s most important trade hub) in the coming weeks. It is a Silicon Valley-esque office building designed to capitalize on the lack of suitable office space for the growing wave of sophisticated international businesses entering the market. Pair that with the fact that current office inventory is already 90% occupied, and we have a clear thesis for our project. Fully titled office spaces in that project are available for under $50,000. Details About The Commercial Office Tower Project in Ciudad del Este Here