The Opportunity:

  • 10 Year Project
  • 20 year old established teak plantation in Costa Rica
  • Unique opportunity for a short-term timber investment which can be liquidated at any point.
  • Plantation already under secure management.
  • Price are derived from the ITTO market report July 2012
Year Value per Tree 3,000 Trees Total Value Trees Estimates land Value Total Value of Plantation
20 $600 3,000 $1,800,000 $700,000 $2,500,000
25 $800 3,000 $2,400,000 $900,000 $3,300,000
30 $1,200 3,000 $3,600,000 $1,200,000 $4,800,000
  • The plantation will be professionally managed for the full term of the 10 year investment. There is no further thinning required.
  • The plantation is in a secured and fenced area free from risk of theft or external damage. The trees have been kept secure for the past 20 years with no foreseeable risk.
    • Low risk asset
    • High capital growth potential
    • Tax efficient investment
  • The above figures do not take into account any likely market price increase in the price of teak (historically 6% pa). The price does however increase with the quality of the teak as the wood becomes a higher grade as it matures.
  • Environmentally conscious: sustainable forestry gives a unique opportunity to do something healthy for the planet whilst accruing a healthy capital gain.
  • Long-term, stable investment: with long growth periods and minimal demand / supply fluctuations, forestry offers stable long term return projections.
  • Low entry levels: Forestry investments require little capital (compared to real estate) and being in a stable un-leveraged market offer more dependable and less volatile returns.
  • Value rises with maturity: As trees grow, their marketable timber value increases at an exponential rate.
  • Little affected by macroeconomics: Irrespective of which government is in power or global currency fluctuations, inflation and interest rates, the long-term factor of forestry and its fundamental applications produce a more constant growth rate.
  • Hedge against real estate & equity portfolios: For the reasons above, forestry’s stability makes it the perfect portfolio hedge against more volatile markets.
  • Flexible exit return dates: with a range of harvest dates, forestry investments have great exit strategy flexibility. If the price were to fall one year, wait another year or 2, whilst your asset continues to physically grow.
  • Potential tax advantages: such as SIPPs or CGT rollover relief.
  • “It’s like owning an oil well that continuously grows in size.”
  • Unique opportunity for a short-term timber investment which can be liquidated at any point.
  • Plantation already under secure management