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Teak is a terrific and valuable asset for which there is a huge international demand. The world's precious stocks are in very short supply and diminishing fast.
This is an investment option that you can feel really good about; not just because the projected returns are very high, but because the sustainable nature of the project means you are also contributing to the environment and the local communities in Thailand.
The world's tropical rain forests are currently being destroyed at a rate of over 35 million acres each year to supply commercial timber. The tropical hardwoods planted by companies such as this will help reduce the pressure of deforestation on the world's natural rain forests, as well as providing a sustainable source of commercial timber. Because we use the latest tissue culture, optimum planting density and management techniques our plantations are highly efficient in growing full size trees. This means that the plantations are also extremely effective, per acre of land, in absorbing carbon dioxide from and releasing oxygen to the environment.
Once the trees are harvested the land will be replanted ensuring that the benefit to the environment is sustained.
Why should I invest in Teak?
Teak is a terrific biological asset, the combination of fast physical growth rates, high market price and extremely favorable supply/demand characteristics combine to provide an excellent opportunity. There are three key factors which make investment in teak a uniquely interesting proposition:
- Firstly, there is the physical growth of teak, therefore the asset you buy actually grows in size. In investor terms it's like buying a one bedroom flat and ending up with a detached four bedroom house!
- Secondly, consider the market inflation rate. World consumption of teak has multiplied nearly 25 times in the last 4 decades and today the demand far outstrips supply. Historically the price of teak logs has risen by an average of 7.5% p.a. over the last ten years and with ever increasing demand this price trend is set to continue for years to come.
- Thirdly, you are buying a specific asset not a piece of paper and a promise.
Stocks and shares are so volatile and as we've all seen in recent years, share prices can all but disappear! Your trees, however, will still be there and whatever the financial climate you can weather the storm. And these key factors work together really well – the growth of the teak and the increase in the market value compound to give a projected return of around 20% per annum over 16 years.
All with an investment that is much more stable than investing in the stock market. The team specialises in teak and only teak. Whilst there are many other forestry and Agro-forestry investments available, we firmly believe that teak is the only forestry product that offers a truly reliable investment proposition…
Flexible 5-10 year Investment Package
Our discretionary harvest period, from year 5 onward, allows real flexibility in releasing the value of the asset when it best suits your needs. You can choose to harvest a percentage of your asset every year if desired, depending on market conditions or your requirements at the time – control is firmly back in customers hands.
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