Teak Investments

Teak - How it works

• You, the investor purchase 1 unit of 400 Teak trees which will be planted on one of our plantation partner’s estates. The price of 1 unit is £10,000 GBP followed by maintenance payments of £1,000 GBP paid annually for the first 5 years only.  (Please also see our aged Standing Teak Investment with returns payable as early as year 3)

• Ownership of your investment is held via a Land Lease or a Sale and Purchase Agreement depending on plantation location. You will also receive Timber Ownership Deed in your name only. All contracts are governed under UK Law. The plantation company will be contracted to maintain and provide the best suitable conditions for producing the highest quality teak trees achievable. You will receive an Annual Growth Report keeping you fully informed on the status of your trees, which are identified by GPS co-ordinates and individual identity tags with your name on each tree.

• The objective of the investment is to harvest your teak trees at varying levels of maturity and thus release the latent value of this highly prized tropical hardwood commodity. The timber will be sold locally or globally and the proceeds from the sale will be your return on investment. The entire process from planting to milling, to the sale of your timber is fully managed by the plantation company. After the trees have been harvested, the land will be allowed to rest for a short period and then new saplings will be planted, thus completeing the cycle of sustainability.

• You have complete control of your tree investment and can decide when you want your trees to be harvested and ultimately sold into the global timber market. The investment tables provided are an illustration of how you may want to release capital over the 20 year life of the investment.

• Should your circumstances change and you wish to exit the investment, the plantation company will offer, providing that your request is 3 years after the date of planting, to buy your trees back. This will be carried out subject to an independent valuation of your tree stock.

The forecast tables we present are based on the price achieved for processed timber which means sawing into useable planks, kiln dried, grading and sold ex timber mill as planks/boards which is calculated in board ft values. This forecast is based on extremely conservative base values of £2.95 per board ft sold. The International Timber Organisation (ITTO) in 2006 last recorded the wholesale price of teak at £4.60 per board foot sold. At the time of publishing the exchange rate was USD $1.60 to the £1.00. The 10 year average Dollar Sterling exchange rate is $1.69 to £1.00

Next