By Editor, Global AgInvesting Media
In a move to bolster its sustainable agriculture footprint, Van Lanschot Kempen Investment Management’s SDG Farmland Fund has acquired a 400-hectare irrigated olive orchard in Faro do Alentejo, Portugal. Located in the prominent Alqueva region, a premier hub for Iberian olive cultivation, the newly acquired property will be seamlessly integrated into the fund’s existing Rio de Azeite platform.
The orchard features gentle terrain slopes and benefits from an abundant and reliable supply of irrigation water directly from the landmark Alqueva Dam. Under the expanded platform, the farm will specialize in cultivating premium-grade olives dedicated to the production of high-quality extra virgin olive oil.
Richard Jacobs, Head of Farmland Investments at Van Lanschot Kempen Investment Management, highlighted the commercial and environmental merits of the transaction. “This new acquisition offers a compelling long‑term opportunity in sustainable olive oil production, combining favorable climate conditions, reliable water resources and competitive cost levels,” Jacobs said in the press release. He emphasized that the expansion strengthens the Rio de Azeite platform, allowing the firm to deploy regenerative and environmentally respectful farming practices at scale. Jacobs added that the project aligns with the fund’s commitment to United Nations Sustainable Development Goals (SDGs), focusing specifically on healthy food production, soil improvement, biodiversity protection, and water preservation.
The integration of the new asset into the Rio de Azeite property is expected to drive operational efficiencies and significant management synergies across the Alqueva region. Day-to-day operations will be overseen by an experienced farm management team with an extensive track record of supervising comparable olive orchards throughout the Iberian Peninsula.
This acquisition coincides with a major milestone for Van Lanschot Kempen’s SDG Farmland Fund, which reached its five-year track record in 2026. Following this transaction, the majority of the capital committed by investors has been successfully deployed. The fund’s global agricultural portfolio has expanded to approximately 26,600 hectares, pushing its total assets under management (AuM) past €480 million as of March 31, 2026.
Sustainability remains central to the asset’s operational mandate. The orchard will be governed by a tailored framework featuring explicit environmental targets. Management strategies include implementing grass cover to maintain soil structure, restricting heavy machinery use to prevent soil compaction, and utilizing precision drip irrigation to maximize water efficiency and mitigate pollution risks. Furthermore, three dedicated conservation areas have been mapped out on the property to study and foster local biodiversity.
Per the press release, the asset will be incorporated into the SDG Farmland strategy’s sustainability framework through tailored implementation plans and targets. The team will make sure to follow the recommendations regarding the use of grass cover to maintain soil structure; restrict the use of heavy machinery traffic to prevent soil compaction and prioritize efficient drip irrigation to limit water use and prevent pollution. In addition, three conservation areas are mapped, where biodiversity will be studied and managed.
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