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8/9/2019 Teak Investment - Property Frontiers
1/5
Tea
Annualised ROI of 161%You can invest with cash or via a SIPP from Just 11,000
8/9/2019 Teak Investment - Property Frontiers
2/5
Durable Beauty Key investment dataTeak is one of the most beauful and durable of the tropical hardwoods. Its true
value as an investment lies in its versality. As praccal as it is valuable, these
qualies are reected in the many uses to which teak has been put.
The furniture industry accounts for around 85% of teak use today. However it is
also the essenal mber in ship and yacht building, because its high oil content
gives it properes that other woods do not possess. Teak is used in joinery,cabinet-making, turnery and panelling, in the carving of ornaments and the
manufacture of tanks and vats requiring high resistance to acids.
There is now an extreme shorall between demand for teak and its supply. Its
value has made it especially vulnerable to illegal logging, which has depleted
supplies. Some governments have responded by making teak exports illegal, and
this in turn has increased the cost of this precious tropical wood.
For several decades teak has demonstrated appreciaon rates that consistently
exceed the rate of inaon. Teak trees are a tangible asset, free from the
uctuaons of the internaonal markets. S uch condions ensure that teak will
connue to be a much sought-aer commodity and a protable investment for
many years to come.
Invesng in teak also helps to secure the future of this rare but essenal hardwood
and protect the tropical forest environment where it thrives.
Insurance cover aer year ve
Your asset is registered in your own name
Fully inclusive of maintenance fees
Grower has over 20 years experience in forestry
UK based company
Tree exchange programme
Guaranteed tree replacement for the rst ve years
Minimum investment 11,000
Investments open to private clients and instuons
Invest with cash or via a Self-Invested Personal Pension (SIPP)
Medium to long term return up to 17% IRR
All plantaons are freehold
MILLETTEA
GREENOIL
AUSTRALIA
TEAK
INVESTMENTS
SRILANKA
Call us +44 (0)20 3012 0306or email [email protected]
You can invest with cash or via a SIPPAnnualised ROI of 161%
Money does not grow on trees Unless you are
in the timber business
Financial Times
8/9/2019 Teak Investment - Property Frontiers
3/5
Why invest in Teak Forestry?
TEAK
INVESTMENTS
SRILANKA
Call us +44 (0)20 3012 0306or email [email protected]
You can invest with cash or via a SIPPAnnualised ROI of 161%
An Asset of Substance As your trees grow, they become an ever-more useful andvaluable asset. When they reach harvestable maturity, their
value will have risen very signicantly compared to the inial
investment. Over a 15-25 year period, there will be a strong
and consistent increase, made even stronger by inevitable
inaon in the price of teak.
The rarity of teak ensures its value to investors. At the same
me, a teak investment safeguards this hardwood and boosts
the local economy by creang stable employment. Teak
Investments Sri Lanka promotes development and growth,
whilst conserving areas of forest vital to the planet as much as
the locality. Our growers pracce of sustainable forestry helps
hold together the co
the teak growing are
Teak Investments Sr
kind usually associat
However the eleme
investments is abse
growth is immune to
unlike almost all for
does not require on
improvements or m
As an asset class, mber a renewable
resource with constant product
demand stands out as a remarkably
stable investmentBloomberg Wealth Manager
Teak is a substanal product, demand for which is not only
reliable but rising fast. It is a worthwhile investment for the
long haul, oering security combined with good nancial
returns two rare qualies in the present
commodity markets.
Growing demand for teak is now combined with more limited
growing areas. Th ese geographical changes are brought
about by deforestaon and illegal logging. Yet the shrinking
internaonal supply is combined with growing
consumer demand.
8/9/2019 Teak Investment - Property Frontiers
4/5
The InvestmentThere are two investment packages, one at 11,000, the other 18,000.
Both are one-o payments, fully inclusive of management and
maintenance fees. The parcel of land in which you invest is part of the
growers freehold teak plantaon and is leased to you for the duraon of
the teak trees growing schedule. Private plantaons are available in 25
acre sites and bespoke investment plans are welcome.
The rst opon (11,000) oers an annualised Return On Investment
(ROI) of 99% over the full planng meframe of 25 years. The second
opon allows you to invest 18,000 and over the full meframe oers an
annualized ROI of 161%.
Trees that fail to thrive are replaced by the growers during the rst ve
years as part of the investment package. Aer this me, the trees have
full insurance cover as they grow towards maturity.
Predicted returns are realisc, rather than speculave. The growers
combine transparency with expert knowledge of teak management
gained over more than twenty years experience in forestry. Their
calculaons are more accurate than those of other teak products on
the market because they take account of both taper and wastage. Our
growers have Sri Lanka Board of Investment (BOI) approval, which
safeguards clients investments. They have a posive and long-standing
relaonship with both the government and the communies they serve.
Your asset the land and the trees it contains is registered in your own
name and you can invest with cash or via a Self-Invested Personal Pension
(SIPP). You will receive an annual forestry report from the grower. There
is a good exit strategy: should you wish to sell the land on or transfer to a
third party, you are free to do so.
The locaThe growers plantaon is lo
in condions ideal for teak g
remained free from polical c
has put the whole country ba
Sri Lankas government is full
illegal logging of teak forests
of invesng in sustainably far
Sri Lanka now has a stable, d
government, which is welc
eco-investments which help
its resources. There is a focu
tourism, making full use of th
gentle ocean winds.
The former Ceylon, Sri Lanka i
Bay of Bengal and south-east
the Indian subconnent by th
former Brish colony and ac
legal system operates on prin
TEAK
INVESTMENTS
SRILANKA
Call us +44 (0)20 3012 0306or email [email protected]
You can invest with cash or via a SIPPAnnualised ROI of 161%
8/9/2019 Teak Investment - Property Frontiers
5/5
Financial breakdown Next steps
The information in this document (including but not limited to, photographs, illustrations, plans, d
prices) are for guidance only. While every effort has been made to offer current and accurate inform
no warranties or representations as to the accuracy, correctness, reliability or otherwise with respec
responsibility for any errors or omissions in the content contained in this document. Within this do
party material and third party web sites. Eco Investments accepts no liability in respect of the con
should not be taken to be endorsing, publishing, permitting or authorising such materials or sites.
for, any transaction concerning goods or services available from such third party materials or web siservices and resources contained in this document from time to time and reserves the right to mak
past, current or prospective visitors to this document.
The content relating to the past and/or current performance of an investment is not necessarily a gu
investments or income from them may go down as well as up. Prices quoted may be based on a conv
may vary. This is not a regulated investment for the purpose of the UK FSMA (2000) however as a fo
follow the Code of Conduct of the Association of International Property Professionals (AIPP).
The information contained in this document should not be construed as financial, tax, legal or any oth
to consult a financial and/or legal professional advisor from suitably regulated sources.
Except where noted otherwise, all material in this document is Copyright 2010 Eco Investment
consent of Eco Investments, no permission is granted to copy, distribute, modify, post or frame any t
Small print
To purchase or discuss this investment in greater detail please contact us
call +44 (0)20 3012 0306
email [email protected]
TEAK
INVESTMENTS
SRILANKA
Call us +44 (0)20 3012 0306or email [email protected]
You can invest with cash or via a SIPPAnnualised ROI of 161%
Investment Opon One (300 trees) - Investment 11,000 inclusive of maintenance fees:
Investment Opon Two (500 trees) - Investment 18,000 inclusive of maintenance fees:
Prot
Year
12,017
10
56,764
15
157,314
20
435,808
25
ROI 109% 516% 1430% 3962%
Annualised ROI 11% 34% 72% 158%
IRR 9% 14% 15% 17%
Prot
Year
20,362
10
94,940
15
262,524
20
726,680
25
ROI 113% 527% 1458% 4037%
Annualised ROI 11% 35% 73% 161%
IRR 9% 14% 16% 17%
Present tree value Value at Maturity
Age
10
ValuePrice Growth
Rate
Per
Tree
Investment
Value
Harvest
Cost (5%)
Net Investment
Value
45 6% 80.76 24,228.37
15 99 6% 237.77 71,330.66
20 184 6% 590.58 177,173.07
25 365 6% 1,567.75 470,324.09
1,211.42 23,016.95
3,566.53 67,764.12
8,858.65 168,314.42
23,516.20 446,807.88
Present tree value Value at Maturity
Age
10
ValuePrice Growth
Rate
Per
Tree
Investment
Value
Harvest
Cost (5%)
Net Investment
Value
45 6% 80.76 40,380.62
15 99 6% 237.77 118,884.43
20 184 6% 590.58 295,288.45
25 365 6% 1,567.75 783,873.48
2,019.03 38,361.59
5,944.22 112,940.21
14,764.42 280,524.03
39,193.67 744,679.8