Timber Investments

For decades Teak has demonstrated appreciation rates that consistently exceed the normal rate of inflation. Combining your green investment's projected growth value with selling price increases, a parcel of Pacific Teak trees is likely to outperform traditional investments by a wide margin as well as provide the security of a growing tangible green asset, free of the volatility and risks of conventional markets. The great news about timber is that it is the only commodity that has had a steady rising price over 200 years 100 years, 50 years, 10 years. Furthermore, timber has outperformed Bonds, Commodities and Stocks with an average compound return of 16% between 1987 and 2006. The Investment Investors simply lease a plot on the timber plantation. The value of the investment and the return it will derive is based on the Teak trees growing on it, attracting specialist Timber Management Companies who will lease the plots from the investors. The Return The Return in simple and effective. Rental fees are approximately £500 per 0.1 hectare plot per annum. This is the equivalent to 10% return. Additionally, the investor will receive a potential extra 5% in the thinning years, which occur every 4-5 years. The first thinning cycle is due in 2011. Investment Horizon The investment horizon is targeted for the mid to long term investor, typically 18-25 years. However understanding changing investor circumstances, flexible exit strategies are available after 3 years. Once the investor has desire to exit, the developer guarantee an additional 5% return on the initial investment. Investment Characteristics Local government supported investment Minimum 10% investment return per annum (up to additional 5% from thinning proceeds) Minimum investment £5000 per plot. No maximum limit. 100 trees per plot (approx) 0.1 hectares Low risk, uncorrelated investment Investment protected by Title Trustees International Initial 2.5% charge on initial investment. No other fee/charge through investments life Buy back option after 3 years with 5% return on initial investment SIPP (Self Invested Personal Pension) compatible