Teak trees take 20 to 25 years to mature. The advantage in the tropics is that we have a much faster growth, which makes it possible to invest for yourself or your children. It sold shares in teak plantations on guaranteed interests and later diversified to other schemes through four principal companies: Anubhav Agrotech, Anubhav Green Farms & Resorts, Anubhav Plantations, and Anubhav Royal Orchards Exports.. My own biases; I have very little understanding of agriculture and forestry, and my investment outlook is typically shorter than the 25 years teak wood requires. So, start planting Teak wood at your vacant land and earn big profit. Teak is found in a variety of habitats and climatic conditions from arid areas with only 500 mm of rain per year to very moist forests with up to 5,000 mm of rain per year. A Real Estate Investment in Kyiv, Ukraine, with 18% gross yields? Just make sure you choose your operator wisely. Anyone’s guess is as good as mine. As well as now a days we are facing shortage in Teak wood and in future demand will be more high as some people are choosing wood furniture more than steel or iron. The problem is that it is almost impossible to do, since it’s very rare that you can buy forest in industrialized countries. It is as … Teak’s core qualities are that it is resistant to termites, fire, rot and fungus. Teak is the common name for the tropical hardwood tree species Tectona grandis and its wood products. Price have increased independently from crisis for decades. More countries could impose export bans on trees thus driving prices up. Currently prices are at $3,000 US per cubic meter (*1). I enjoyed the presentation this evening on your Teak Hardwoods investment opportunity. Please contact us for additional information about becoming an owner in either the 2nd phase of the newborn Nicaragua farm (1/4 acre parcels starting at only $6,880) or the mature, 19-year-old Panama teak farm (1/4 acre parcels starting at $22,500). Each hectare of the plot (approx. The start of our Costa Rica story began with forestry projects and our first teak plantation investment, which accompany us to this day. I’m not a tree expert. Teak has many amazing qualities, such as being resistant to rot, fungus, fire and termites. PROFITABILITY OF TEAK PLANTATIONS IN THE DORMAA DISTRICT OF THE BRONG AHAFO REGION OF GHANA Typically, though, the annual rainfall in areas where teak grows averages 1,250-1,650 mm with a 3-5 month dry season. The wrong properties were purchased. Once we reached the plantation, I saw…trees. The supply for this kind of quality teak wood has been too low and the demand very high for several years now. We are looking to investment partners for another 5.5 Acre of land in the Southern Dry zone of Sri Lanka.You are welcome to visit us at Forests for People Tanamalwila any time or Be aware of the annual fees and who the management team is. Many experts agree that you should invest part of your savings or net worth in forest. How did we arrive at this idea? Anubhav Plantations was an Indian Chennai-based plantation company founded in 1992. The investment is said to amount to US $115 million. It had to be cheap, and this was the only criteria. This is something that won’t change in the future. Plantation wood from Myanmar, first and second grade quality has a price of 5,000-7,000 Indian Rupee per cubic foot (that’s not cubic meters). Latin America is now a large “producer” of teak wood, mostly driven by private businesses, with Brazil and Panama taking the top two spots. About 27 percent of the national territory are protected (in Germany, it’s 3.6 percent and in the USA, it’s 14 percent). Global Sales Director Società Italiana Elicotteri set 2011 - feb 2014 2 anni 6 mesi. Probably the most high-profile case concerned a Netherlandsowned company, Flor y Fauna, involved in establishing teak plantations in Costa Rica. Fundamentally, this article is not only about investing in a teak wood plantation, but also about various types of such packaged investments. Without having to trim a tree or live on a plantation ... How to pair your investment with a second residency overseas for your own "PLAN-B" Pass generational-wealth on to your family ... to a free daily email newsletter by Mikkel Thorup and to be contacted for future marketing and sales opportunities from Teak Hardwoods. Good luck. For someone who just wants to buy something and forget about it, this could fit the bill. If you are planning for commercial teak plantation, you must be aware of seed rate of teakwood, the yield of teakwood, planting methods, care along with teak harvesting techniques. Britain-based Global Agriculture Joint Venture Co. will invest $115 million in establishing the private teak plantation and producing teak, according to the Directorate of Investment and Company Administration. (as at 2019) from the renewable commodity wood. You buy a parcel within a plantation or field. The majority of the funds were “invested in the teak plantation, and most of the remainder went in fees to – guess who – the handily-set-up company MH. After the harvest, plantations can be reforested again. That means you receive title to your Panama or Nicaragua parcel, forever receiving the benefits of teak reforestation efforts. I had happily been in Nicaragua for three months because of governments shutting down the world. The start of our Costa Rica story began with forestry projects and our first teak plantation investment, which accompany us to this day. Disclosure: The developer offered me a return trip from Managua to his development (one hour drive each way), and two nights of accommodation in a lovely ocean-front apartment. With prices and growth rates roughly comparable for well managed and well located plantations, return on investment (ROI) is based largely on the cost of purchasing and managing the teak plantation. We can have a fairly good appreciation of what the teak market is like currently, or next year, but in 25 years from now? As a leading provider of tree investment schemes, we have already paid owners proceeds from wood sales 24 times since the foundation of ShareWood in 2007, with average returns of 6.0 to 8.9% IRR p.a. In 2014, the Burmese government started imposing drastic policies to restrict the logging, and export of teak. Together with market prices these are decisive parameters for return on investment. Additionally, I noticed that security was going around, and that the path to the plantation was well trodden. Your investment. Whilst doing a bit of background due diligence, I found out that this developer also owns a teak wood plantation in which investing is possible. The plantation teak is Tectona Grandis the true teak that we have seen like floors, outdoor decking, furniture, solid doors and expensive decks for boats. This skepticism stemmed from two factors: Following my articles on investing in Nicaragua and on real estate in Granada and San Juan Del Sur, a property developer contacted me and asking me if I was interested in checking out his ocean-front development near Managua. It is not a very transparent market due a lot of illegal logging happening in many places. “Thinning”, which means removing the weak trees to make space for the good ones, takes place on a regular basis but starts earning money in year 12. To get the right prices on the market, it only makes sense to produce very high quality teak wood. There are so many trends that could impact it, that it is impossible to know or even estimate. You just need to make sure the operator will be around in 25 years time, as you are dependent on him for your investment. It sold shares in teak plantations on guaranteed interests and later diversified to other schemes through four principal companies: Anubhav Agrotech, Anubhav Green Farms & Resorts, Anubhav Plantations, and Anubhav Royal Orchards Exports.. You are generally promised (very) high returns. Additionally, due to different regulations and laws in industrialized countries, it is only permitted to sell plantation wood and prohibited to sell rainforest teak wood. Teak wood investing is not a pure commodity investment, but rather an investment into land and real estate and something ecologically friendly. Its scie ntific name is Tectona grandis. I accepted, with the condition that I would write whatever I want to. Internationalization and Diversification Consulting. Do you have any International Tax questions? The wrong or insufficient forest management. Latin America and Belize’s teak plantations are now expected to fill the gap between supply and demand. A Real Estate Investment in Tirana, Albania? • We modeled teak yield using the von Bertalanffy equation, a biological-based model. So why wait, let us dive into detailed farming of teak wood.. Teak wood known as the king of timber belongs to the family Verbenaceae. Teak Tree Investments (TTI) is a newly established holding and operating company that will take minority equity positions into 4-8 Filipino provincial (SME/agricultural) banks and build them up into ‘Regional Champions’ by providing general services and technical assistance. Forestry Projects And Our First Teak Plantation INvestment. Teak prices have grown 5.5% per year on average over the past 40 years. A Real Estate Investment in Managua or Gran Pacifica, Nicaragua? Tectona grandis is native to south and southeast Asia, mainly India, Indonesia, Malaysia, and Myanmar, but is naturalized and cultivated in many countries, including those in Brazil, Africa and the Caribbean. In our Agrotech plantation there are about 100,000 trees ranging from 10 to 25 years of age where each tree contains 0.75m 3 on average. The next large advantage of teak is, that it needs only 20 to 25 years until the trees are valuable and ready to sell. AsiaTeak was established in April 2009 for the sole purpose of managing and producing high grade teak from plantations in Sri Lanka and Thailand. You can find the developer brochure and a lot of information on investing in teak wood, and on the residency programme by clicking here. That’s why it’s such a great time to make investments in the teak industry. Investment in the property and forest management until the final harvest: The supply for this kind of quality teak wood has been too low and the demand very high for several years now. However, Life Forestry Group teak plantations offer even more. The historically biggest source of teak, Myanmar, could start officially exporting again which would result in a massive supply increase. Teak investment information and opportunities in teak reforestation in Panama. Teak Plantation. Now you might see that we calculated quite conservatively above with $1,000 per cubic meter. You want to leave a legacy to your grandchildren. quality teak and ensure that not only the quantity of timber, but also the timber quality is right for the investors. 2.5 acres) is planted with 1,100 teak trees. This is what distinguishs us significantly from other providers in the industry. A comprehensive model for forest investment in emerging economies was proposed. Teak trees typically get harvested after 25 years. What should investors be most diligent when an investment in Panama or Nicaragua? Additionally, we can show you our model plantation in San Isidro and further explain that the above assumptions are conservatively calculated because we will make much higher returns. But again, this is calculated very conservatively and cautiously. Read up on our mission, team, and traction | Teak Tea | We produce superior teas using leaves from our plantation in Costa Rica. This meant that new sources of teak had to be found, mostly stemming from plantations rather than the natural type found in Myanmar. The species is indigenous to India and the South-east Asian region. Planting 70 trees and a 0.1 hectare parcel in the middle of nowhere doesn’t cost that much, but one has to take a step back before accusing the operator of price gouging. The operator plants the trees for your wood, mangoes, avocados, coffee, walnuts or does something similar for aquaponics. The collective goal of AsiaTeak and its group of companies is to produce the world’s most sought-after and valuable teak trees. What should investors be most diligent about when buying a teak plantation? Owning real assets in turbulent times is great. An investment in teak means that you will own your very own plot of land, complete with the valuable teak trees that grow on it. Teak Wood Farming – A Step by Step Guide. If you prefer Panama, just ask the developer about that when getting in touch with him. Therefore, we can only do business with each other if we know each other and can see if we are a fit. I see this investment as interesting for 3 types of people. Environmentalists might not like teak trees because transporting them far away requires CO2-heavy transport and chopping trees is generally not cool. Investment in tree plantations, which was always relatively low in India, has recently grown in importance. I have actually been looking into this bit by bit for the last few years and the recent market volatility finally has gotten me off the fence and realizing that I need to diversify into other investments such as agriculture. One average, American produces 15.8 metric tonnes per year. Many experts agree that you should … Maybe you’ve stumbled upon in-flight magazines or websites that promise high returns for agricultural and forestry investments. one acre). That said, this particular developer has a solid track record, and also owns communities and developments in Panama (450 hectares) and Costa Rica (105 hectares). According to reports from the International Tropical Timber Organization (https://www.itto.int/), prices from a plantation in Myamar (1st and 2nd grade quality) doubled since the year 2013. They promote bio-diversity, contribute to the We researched prices in this context, which you can review in the following monthly report from June 2019 by the ITTO, https://www.itto.int/files/user/mis/MIS_16-30_June2019.pdf. From the Gran Pacifica resort, the horseback ride took about 45 mosquito-infested minutes. 35 cubic feet are 1 cubic meter. Costa Rica is a country with extremely strict forestry legislation, which are hard to imagine in Europe or North America. • So we get a total of 200 cubic meters. Teak Plantations Investment Controversies Teak plantation investment schemes have created considerable controversy in several countries including Costa Rica, India and the Netherlands. This is something nobility has already done in the past. New teak plantation investment approved in Myanmar 19th September 2017. ), prices from a plantation in Myamar (1st and 2nd grade quality) doubled since the year 2013. There you can extract the following prices: Plantation wood from Myanmar, first and second grade quality has a price of 5,000-7,000 Indian Rupee per cubic foot (that’s not cubic meters). This makes it only an investment for future generations. These trees are vulnerable to fire, fungus, insects, diseases in their first few years. As Myanmar represented 75% of the export volume, this resulted in extreme tightness in the global teak market. How did we arrive at this idea? Probably the most high-profile case concerned a Netherlands owned company, Flor y Fauna, involved in establishing teak plantations in Costa Rica. Teak trees typically get harvested after 25 years. We take the average of 6000 Indian Rupee, which equals US$ 87.09 (exchange rate from July, 27th, 2019) multiplied by 35 to get $3,048 USD per cubic meter. If you were to invest $6,880 to get a 0.1 hectare parcel of teak wood, these are the projections according to the operator. When you compare the features of the Panama Forestry teak residency package to those of other reforestation residency visa offerings, you'll find that our program offers the soundest, most profitable, and secure residency program available. You are VERY dependent on the operator. The above are original pictures without any “doctoring” done! The figures in this project report are not accurate, but to give an understanding to young entrepreneurs on investment and the returns of the Teak Wood farming business project. But overall, such an investment does have a place in some portfolios. Most importantly, I learned that I know next to nothing about the teak market. ... Commission a permit has been issued to UK-based Global Agricultural Joint Venture Co Ltd. for the establishment of new teak plantations. Today our green branches have spread far and wide to serve our customers around the country and in the world. Given supply-and-demand dynamics at work, it could increase significantly. We appreciate hard assets, investments you can see and touch, even go to visit… from apartments in central Paris to teak plantations in the jungles of Panama. Universal Media Networks Renewable Enegry Maldives Pvt. We only calculated with 200 tress per hectare (2.47 acres). Morogoro Region of Southern Tanzania 28,000 hectares Investment Date: March 2011. Who is our client. We can provide both FSC and non-FSC timber. (Source: Food and Agriculture Organization of the United Nations, FAO-Report 2010). has raised Teak Plantations by converting the mature and over mature Eucalyptus seed origin plantations especially in high rain fall and productive areas like Rajahmundry and Eluru during the period from 2001-02 to 2016-17. People could sneak in at night and cut down the trees for cash. Dwindling forests in the world have led many to show interests in tree plantation development especially teak both as an investment potential and natural resource conservation. If you want fatter margins then go ahead and buy your own hectares, get someone to plant your trees, other people to maintain them and ensure there is security, and finally get competent people to do the thinning and selling for you. Panama Teak Forestry management can provide you with a solid return on your timber investment. First quarter out line for this year 2018 April is FfP to plant 3.7 acres of Teak Forests. Teak plantation investment schemes have created considerable controversy in several countries including Costa Rica, India and the Netherlands. No wonder it is in such demand. The only investments into the teak plantation came from these fraudulently-run pension schemes. Teak is historically native to South East Asia. It’s noteworthy that you don’t buy a share in the project, but rather actually own the land in your name. The plantation is part of the massive land package that the developer owns along the coast. I was always very skeptical of such schemes. This is possible in Costa Rica by only using the right forest management techniques on a high quality level, such as what we are offering. Is it likely that bad things happen to your trees? Cost for land, planting and management for a full 25 year rotation in Panama runs about $8,000 per hectare ($3,300 per acre). The bulk of the money is made at year 25 when all the trees get chopped and sold. The facts of teak plantations. Why is teak such a good investment? The returns kick in after a few years once the trees are grown and start producing. • Forest yield estimation using a unique dataset and financial analyses were performed. You get what you pay for. The collective goal of AsiaTeak and its group of companies is to produce the world’s most sought-after and valuable teak trees. The operator takes care of the everything for you. The weather and climate are perfectly adapted to teak trees. So one teak plantation neutralizes the CO2 emission of almost two average Americans. This is great, but to be completely honest with you I have no idea about trees. The word teak comes from the Malayalam (in the Malabar region) word th… Buying a $6,880 parcel for a 3.5% allocation to such an investment is not unreasonable at all. We sell teak plantation farms: We do not sell shares, tittles, trees, acres of farm, parts, etc. This corroborates a-15-year rotation teak plantation used for this paper. We are looking for the right location and farm, do the forest management until the final harvest and sell the harvested wood. India is well known for its self-defeating protectionist measures. With growth above the industry norms, we hold over 2000 acres of sustainable forestry lands of Mahogany, Sandalwood, Teak and … What is the pitch of the Teak Wood Plantation operator? International teak plantation investments and teak farms for sale around the world. Our well-managed teak plantations, trees are thinned at regular intervals. Sirivana Teak Plantation project offers 1 Acre and in multiples too. for investment in teak plantations in India. Each tree has an average of 1 cubic meter. We buy the plantation today, improve it with our own forest management methods and carry out the final harvest and the sale of the wood. The pros and cons of the Montenegro Citizenship by Investment programme, One of the Best Structures for Digital Nomads: The Sole Proprietorship in the Country of Georgia, A Real Estate Investment in Skopje, North Macedonia, Investing in the stock market in Uzbekistan – a high-growth frontier market. What I like about this particular developer is that he has skin in the game as his main business is the massive communities he is developing all over Central America. Please contact us for additional information about becoming an owner in either the 2nd phase of the newborn Nicaragua farm (1/4 acre parcels starting at only $6,880) or the mature, 19-year-old Panama teak farm (1/4 acre parcels starting at $22,500). But if the climate and the soil weren’t suitable, it couldn’t become a success. The volume of teak investment will depend partly on the rate of interest, business trends and profit expectations. Green Teak Plantation & Investment giu 2014 - Presente 6 anni 7 mesi. Additionally, a tree in Europe or North America takes between 80 to 120 years to grow, in order to sell it. Kilombero Valley Teak Company (KVTC) owns and operates Africa’s largest, privately owned teak plantations and sawmill operations. After 80 percent of the rainforests were cleared not only in Costa Rica but also in other parts of Central America for cattle ranches, banana and pineapple plantations during the 80s, intensive protection laws were established. Sadaharitha Plantations Ltd, the leading commercial forestry conglomerate in Sri Lanka, was founded in the year 2002.During its journey over the last 18 years, Sadaharitha took great strides towards its sustainable growth. A tree plantation timber investment create long-term stable appreciating assets for pension funds that may be exposed to market volatility. This document shows, that the prices have doubled since 2013!! Because of these laws and reforestation projects, about 50 percent of Costa Rica is forested again. Just don’t overexpose yourself to such investments. AsiaTeak was established in April 2009 for the sole purpose of managing and producing high grade teak from plantations in Sri Lanka and Thailand. The start of our Costa Rica story began with forestry projects and our first teak plantation investment, which accompany us to this day. These numbers are in constant dollars, so should be higher in nominal terms taking inflation into account. This particular developer and operator has been operating all over Central America since 1996 and has ambitious plans for its community at Gran Pacifica. I’d say this is for people that have at least $200,000 of investable assets overall, as having money locked in for 25 years can become an issue. Panama Teak Forestry operates several plantations and timber concessions therefor the investors enjoy the high returns of timber investment without the risks inherent in direct land ownership. In the end, these are all things that can be avoided easily. The failure was already certain at the moment the property was purchased. As the sustainable supply of teak from natural forests in Asia diminishes, demand for teak increases, and teak prices rise, we expect to see expanded production of plantation-grown teak. For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use. Moreover, the LEV max average for teak plantation projects in Colombia was US$7000 ha − 1, with values in the range of US$532–15,155 ha − 1. Teak plantation investment schemes have created considerable controversy in several countries including Costa Rica, India and the Netherlands. A competent operator can mitigate these risks. • With your investment of $80,000.00 or more, you may apply for resident status in Panama • All legal fees are included to register the plantation in your name • Investment return is free of tax • You become the owner and direct beneficiary of all revenues from teak timber on you plantation… As its approximately 7,000 acres of tropical are harvested Panama Teak Forestry will … As of now, there are already more than 220,000 trees either already growing or slated to be planted on the two TKO Farms. With prices and growth rates roughly comparable for well managed and well located plantations, return on investment (ROI) is based largely on the cost of purchasing and managing the teak plantation. So when investing in a teak wood plantation, you are looking at a (very) long term investment. Trees are good for the environment, and this teak plantation creates local jobs. When you surf through the web, you will easily stumble upon this topic. Matthew Haertzen, a timber portfolio manager for Cogent Partners, the fund manager for Cambium Global Timberland (a UK listed timber investment fund), was tasked with the analysis of a managed teak plantation in Honduras for potential cumulative investment in the amount of $21-25 million. All I can say is that the trees were there, and that they didn’t look like they were falling apart. After 4 years, about 300 trees/hectare are thinned, leaving 800 trees. Of these, 142,082 are teak. To be honest with you, it depends on your particular situation. Actually, if high inflation were to show its ugly face within the next 25 years you’d be. Teak Wood Farming – A Step by Step Guide. That land can be utilized for next 10 year for Teak plantation. Not enough capital to hold out until the final harvest. You are in your thirties or forties, do not need liquidity, and want an investment that matures when you are about to retire. We know many of these projects and companies personally and can therefore shed some light on it. Organizing such an operation is not easy, and takes a lot on constant effort. It grows as a huge tree and yields excellent quality wood. Anubhav Plantations was an Indian Chennai-based plantation company founded in 1992. The lists for both positive and negative developments are endless. Cost for land, planting and management for a full 25 year rotation in Panama runs about $8,000 per hectare ($3,300 per acre). Is Nicaragua a worthy Investment Destination? A comprehensive model for forest investment in emerging economies was proposed. A Teak wood farm can harvest starting from 7 … Trees must not be felled and violations are prosecuted with very long prison sentences. Follow me on Facebook, LinkedIn & join the PRIVATE LIST below to not miss out on future investment posts. Nicaragua could ban the export of teak trees, which would mean you’d be restricted to the local market which would drastically lower the value of your investment. Latin America and Belize’s teak plantations are now expected to fill the gap between supply and demand. The only aim was to line their own pockets. According to reports from the International Tropical Timber Organization (. No other Investment can be better than this. Probably the most high-profile case concerned a Netherlands owned company, Flor y Fauna, involved in establishing teak plantations in Costa Rica. The originators didn’t have a successful investment product for investors in mind. Your email address will not be published. With prices and growth rates roughly comparable for well managed and well located plantations, return on investment (ROI) is based largely on the cost of purchasing and managing the teak plantation. 3) Agriculture Ministry. The British empire then “disseminated” it across its colonies in India, Africa, and the Caribbean. Many teak investments can lead to residency and investor visas. Depending on the quality of the teak which emerges from your parcel, you can expect returns of between 298% and 3029% over the 25 year lifespan of the investment, for an initial investment of $6,880 per 0.1 hectare. What is within our control as investors is making sure the operator is honest. Similarly, entering into a plantation investment at a later stage with more trees makes much more sense for investors as the maintenance needs are less and the projected results are far more reliable. Below you can watch how our team built a road in a very steep area of a teak plantation: According to a study from the University of Munich (April 2009), one hectare of a teak plantation can reduce the emission of CO2 by 28.1 tonnes per year. What is the best way to invest, what factures affect your return on investment? We know, this requires trust on both sides. Therefore teak wood has higher demand in national as well as International markets. For further information please sign in or request access here. That’s why it’s such a great time to make investments in the teak industry. The company will invest in establishing teak plantations and produce teak in … The presently existing forests, except plantations, must not be used commercially anymore. If he goes bust, you end up with land in the middle of nowhere with trees that are vulnerable. The same mistakes that were and are made in the real estate industry were repeated here. Currently prices are at $3,000 US per cubic meter (*1). Fires are a massive risk to teak plantations and older trees and plantations tend to have a far greater fire resistance than younger ones. Teak farming requires proper research (in terms of soil test, environment and climate) and good maintenance for 10–12 years. A tree plantation timber investment create long-term stable appreciating assets for pension funds that may be exposed to market volatility. On the other hand, you’d reasonably expect the world price of teak to increase throughout those two-plus decades. Don’t overexpose yourself and manage your expectations. Teak is a worldwide commodity like oil or natural gas. Objectively, I had time to kill and was quite intrigued by the opportunity to finally see one of these projects. Without having to trim a tree or live on a plantation ... How to pair your investment with a second residency overseas for your own "PLAN-B" Pass generational-wealth on to your family ... to a free daily email newsletter by Mikkel Thorup and to be contacted for future marketing and sales opportunities from Teak Hardwoods.