GLOBAL FORESTRY
 
  • Mid - Long term investment with redemption option after 3 years
  • Purchase of lease of land on Teak plantation in Belem (Northern Brazil)
  • Lease land back to a programme manager who manages the plantation and harvests the timber
  • 10% minimum annual return
  • Individual title held in UK trust with Title Trustees International
  • Minimum investment of £5,000
  • Fixed return of 12.5% pa over 17 years
  • Buy back by GFI of 105% of investment available after year 3
 
 

Global Forestry Investments has aims to provide long term capital growth through investing in Brazilian sustainable forestry. Investors have an opportunity to participate in an ethical and financially rewarding investment. Appreciating the high demand for timber, GFI harvest land with sustainable Teak timber plantations. Supported by the local government, for every hectare purchased by an investor, GFI purchase a second hectare of protected land. They also deliver socio-economic initiatives through employment and the establishment of education facilities in the local area.

 

Why Teak?

  • Strength & Weather resistance - Teak trees withstand even the most challenging
  • weather conditions due to their natural oil content
  • Fast growing - at just six months Teak trees are already approximately 3 metres tall.
  • By year 2 they are well established durable trees and will grow up to 40 metres tall.
  • Increasing demand - supply chain has been restricted with international boycotts
  • on harvesting natural Teak through illegal forestry, increasing demand for cultivated
  • plantations. With global populations booming in the next 40 years, demand will
  • naturally increase
  • Price - open market value of Teak has steadily increased over the past 20 years.
  • According to the ITTO, the Teak price has grown 8.58% per annum from 1997-2007

The Investment
Low risk and uncorrelated, the investment horizon is targeted for the mid to long term investor, typically 18-25 years. However recognising changeable investor circumstances, flexible exit strategies are available after 3 years. The return is simple and effective. Forestry management companies lease the plots from investors. Rental fees are approximately £500 per 0.1 hectare plot per annum. This is the equivalent to 12- 12.5% return. Additionally, the investor will receive a potential extra 5% in the thinning years, which occur every 4-5 years.

The Underlying Asset
Preserving the natural rainforest and making a real difference to the local community through socio-economic initiatives, investors simply lease a plot on the timber plantation. There are approximately 100 trees per plot of 0.1 hectares. The value of the investment and the return it will derive is based on the Teak trees growing on it - GFI trees are already 8 years old.
Excellent portfolio diversification with non-cyclical returns to stock, bond and real estate markets volatility. The investment is held in beneficial ownership for the investor by Title Trustees International throughout the life of the investment. Working alongside Title Trustees, client investments are protected within a UK Trust, ensuring stability and peace of mind for the investor.

 
 
 
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