Teak Investment - Property Frontiers

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


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


3/5

Why invest in Teak Forestry?

TEAK

INVESTMENTS

SRILANKA



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.


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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




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



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

Documents

Teak Investment - Property Frontiers