“Someone’s sitting in the shade today because someone planted a tree a long time ago” Warren Buffet
THE GLOBAL FORESTRY MARKET
Global demand for hardwood has itself multiplied 25 times in the last 40 years, and with population growth rates higher than ever this trend will continue. With less than 13% of the world’s surface covered in forests, and concerns over global warming, there is now a globa
l crackdown on illegal logging and deforestation. Supply is being severely restricted and these two factors combined will drive legal timber prices higher in the years to come. Tropical forestry offers the ideal diversification from real estate and equity portfolios, providing a non-volatile market with high long-term returns on investment, and a low risk-to return ratio. WHY YOU SHOULD INVEST IN FORESTRY
Environmentally conscious: sustainable forestry gives a unique opportunity to do something healthy for the planet whilst accruing a healthy capital gain. Long-term, stable investment: with long growth periods and minimal demand / supply fluctuations, forestry offers stable long term return projections
Low entry levels: Forestry investments require little capital (compared to real estate) and being in a stable un-leveraged market offer more dependable less volatile returns
Value rises with maturity: As trees grow, their marketable timber volume increases at an increasing rate, as does the woods’ value
Little affected by macroeconomics: No matter global currency fluctuations, inflation and interest rates, the long-term factor of forestry and its fundamental applications produce a more constant growth rate
Hedge against real estate & equity portfolios: For the reasons above, forestry’s stability makes it the perfect portfolio hedge against more volatile markets
Flexible exit return dates: with a range of harvest dates forestry investments have great exit strategy flexibility. If the price were to fall one year, wait another year or 2, whilst your asset continues to physically grow. Demand & supply: The supply of timber is diminishing, whilst the demand is projected to increase inline with the global population. The UN projects an increase in the global population of 55% by 2050 and Global consumption of hardwoods has multiplied nearly 25 times in the last 4 decades. Future carbon credit market: some reforestation projects may be applicable for future carbon accreditation depending on location and project management. WHY PAULOWNIA, THE PRINCESS TREE
Strength - Known in the industry as the «Aluminium of Timbers», Paulownia is 30% lighter than any comparable hardwood, it is durable, strong, twist / warp-resistant and virtually rot free, very low thermal conductivity. Growth Speed - The Princess Tree is known as the fastest growing hardwood in the world /reaches 25 – 30 m height and 70 – 80 cm. thick/ and in comparison to other timbers can be harvested in a quarter of the time /7 – 10 years/. Studies on various existing plantations have shown that the Paulownia produces an average of at least one cubic meter of processed timber per 10 year old tree. Care and treatment – The first three years the tree needs a lot of water and regular pruning. There are no special treatments after that. Because the tree regenerates from its roots, and does not deplete soil quality, it will re-grow to be harvested again, and so on every 7 - 10 years. Investment Value - As an asset class, timber has consistently out-performed most stocks and commodities for the last 100 years, including oil, gas and gold. Its price on the European market is 300 EURO – 500 EURO m3. Supply & Demand - Paulownia is native to China and the Far East and has been used in Japan for centuries as a furniture wood; chests of drawers called “Tansu” are made from this wood and nearly every Japanese home has one. Paulownia timber is currently being developed into an efficient and valuable biomass fuel. Carbon Sequestration - Paulownia absorbs more CO2 than any other plantation tree. Environmental Regeneration Quality - Paulownia’s deep running roots increase the organic content of degraded soils by processing and filtering contaminants through the uptake of its vascular system, also protecting the land from soil erosion and maintains watersheds. Physical properties of Paulownia:
• Paulownia is light weight 17 to 21lbs per cubic foot as compared to Appalachian Red Oak at 39 to 41 lbs per cubic foot.
• Paulownia air dries in 30 to 60 days without cupping, warping, cracking or splitting. Kiln drying takes 36 to 60 hours depending on Dry kiln configuration, horsepower and dimension of lumber.
• Paulownia is resistant to decay and rotting provided it is not in permanent contact with the ground.
• Paulownia species vary in porosity according to Variety but range from 75 to 88% in comparison with poplar 70 to 72%.
• Fire resistance is a feature of all Paulownia, Ignition temp 420 to 430 deg Celsius as compared to Average hardwood at 220 to 225 deg Celsius.
• Density of Paulownia species @10% moisture content ranges from 17.8 to 23.2 depending on Variety and growing conditions.
• Thermal conductivity of Paulownia is very low thus giving it excellent heat/cool insulation properties.
• Chemical composition of Paulownia Varieties: Hemicellulose Pentozan 22 to 25%. Cellulose 46 to 49%. Lignin 21 to 23% Water 7 to 8% Ash .50 to 1.1% Fiber 58.5 to 60.1%
INVESTMENT SUMMARY
The Paulownia Investment Project is dedicated to help the small and medium size investors and provide them with the chance to take a share from the world of the big investors – Forestry. Private investors are invited to join the project by purchasing individual plots of 1,000 m2 with forestry management and timber harvests producing regular returns every 10 years. With a forward purchase contract in place for the timber /OPTIONAL/, owners will have the ability to sell the timber harvested at a contracted price of 270 EURO/ m3.
• Invest from 6,900 EURO per unit /1,000 sq. m/
• One unit gives the investor 1,000 sq.m. of FREEHOLD land in Bulgaria with 110 trees planted
• Land ownership is transferred to the investor.
• The contractor plants the plot with young Paulownia trees and takes all necessary care after them until the end of the third year
• Any trees that may have perished, for whatever reason, within the first three years of planting, are replaced for free.
• Trees are owned by the investor. The individual also has legal control over the management and cropping of their trees.
• Timber harvesting, processing and transportation will be conducted by a management company of your choice who charge 10% of the value of your timber sales. Invest 6 900 E – for one plot 1 000 sq. m. – with 110 trees for 10 years – get 110 m3 timber – sell for 270 EURO – and earn 29 700 EURO = 430 % return on investment
INVESTMENT SECURITY & BENEFITS
• Land and Tree Ownership
The Investor will fully own the land and all trees planted on it. Plot remains under the Investor’s control at all times! All contracts ensure that the Investor has sole legal rights to the property and that no-one can sell, let or use the land for any purpose without your permission. You are free to sell or lease the plot or use it for the purpose of this project unless you sign a Buy back timber contract
• Timber Sale Price Contracted
The contractor has a forward purchase contract with four big European timber trading companies, who have agreed to buy the timber for the sum of 270 EURO / m3 of wood. The decision to sell the timber produced from your plot to them is completely yours. From forecasts one plot of 110 trees will produce 110 m3 of processed timber over 10 years which at 270 EURO/m3 will produce 29,700 EURO. That is equivalent to 430,44% net yield from the original investment.
• Timber Sale Price Free
At the moment the price of timber is 300 EURO – 500 EURO a cubic meter depending on the quality. From forecasts one plot of 110 trees will produce 110 m3 of processed timber over 10 years which at 500 EURO/m3 will produce 55,000 EURO. That is equivalent to 797,1% net yield from the original investment.
• Developer Experience
The project developer has 11 years experience in the forestry sector and 4 years experience n growing Paulownia. The team is made up of highly motivated stuff trained in Europe and China – the native land of Paulownia. The developer has planted more than 200 000 sq. m of Paulownia plantations for himself and more than 500 000 sq.m for other projects. WHAT NEXT? Start your investment plan now! For more information call us at: +35982588161 or email: [email protected]
