Updated : Oct 06, 2020 in General

Socially Responsible Forestry Investment Opportunity (IRR – ~20+% PA)

Socially Responsible Forestry Investment Opportunity (IRR – ~20+% PA)

 

Disclaimer

Present review has been based on available documents and written with the intention of giving a comprehensive introduction. However, it shall not be deemed as an official offer-it is  wertanlage     solely for information purposes.

Short Summary

Socially responsible 5-8-year forestry/green energy investment opportunity with estimated IRR of ~20.00+%. Forest planted, grown, harvested; then timber turned into charcoal, charcoal sold to steel factories.

This investment is FOR YOU if you…

think bank deposits don’t provide satisfactory returns;

like the idea of having tangible assets at the core of your investment;

prefer to obtain outstanding returns even if the exact investment period and rates of return cannot be exactly specified upfront;

think social responsibility and sustainability are important factors in investing. This investment is NOT FOR YOU if you…

are satisfied with returns offered by bank deposits;

prefer speculative investments to investing in hard assets;

wish to invest for a term shorter than 5 years;

do want to have outstanding returns but with a fixed investment period;

don’t think investments are supposed to be concerned about social responsibility and sustainability. Major Characteristics

Currency: Euro

Investment Minimum: ~7.7 thousand Euros

Investment Optimum: from 58 thousand Euros

Investment Period: 5-8 years (estimated 7 years)

Return: varied; estimated @ 20.00+% per annum

(depending on future charcoal sales)

Opportunity Type: to be subscribed

Selling before maturity: possible & flexible Analysis

Timber is a precious commodity. It has been used in all over the world by uncorrelated sectors (i.e. construction industry, paper industry, furniture-making, energy production etc.). Even if timber prices were unchanged throughout the lifespan of a commercial forest plantation, trees would still have the great attribute to grow with relatively little human input and expenditure, and together with the trees invested funds could grow as well.

Standing timber has special value during hard times because timber owners can withhold the forest if they find timber prices too low. There is no extra cost of storage and timber value increases. The value of timber is even higher if it is not sold as timber but turned into charcoal and then it is sold to steel plants. Charcoal is considered green energy.

According to the Nature Conservancy, originally well over 15 million km2 of tropical rainforest existed worldwide. As a result of deforestation, only about 6.5 million km2 remain, therefore the role of sustainable forestry has significantly increased.

In this investment opportunity perspective investors are offered to buy into timber on professionally managed forest plantations of one of the fastest growing tree species of the world. The yield of these plantations are highest worldwide for that given tree species. The investment period is for about 7 years; afterwards the timber is harvested, turned into charcoal and sold to regional steel plants.

Profit is thus generated by charcoal sales. Local national legislation has in fact made it mandatory for steel plants to only use charcoal. As this is one of the fastest growing economies of the world-and the steel industry has especially high potential in the country-, there is a solid base for future local charcoal consumption.

 

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