THE GREEN ECO-FRIENDLY SUSTAINABLE INVESTMENT OPTION
Introduction
Ecolandinvestments.com and Forestryinvestment.org are trading styles of Graham Stuart & Associates Ltd (GSA) who are professional Business Consultants (est 1987), members of The Institute of Business Consulting and UK Sustainable Investment & Finance. Through our strategic partnerships with Environmental Agencies, International Forestry Companies, Commercial Land Developers, Independent Financial Advisors, Solicitors, Pension Companies etc, our clients have access to "hard asset" alternative investment opportunities, supported by due diligence. Commercial Forestry can also be purchased through the allowable framework of many UK SIPPs (Self Invested Pension Plans) structures - including the Eco Land & Property SIPP.
Owners can purchase trees which have been nurtured in commercial state of the art nurseries and then planted in newly created sustainable forests. If they are seeking faster returns, they have the option of standing timber already in the ground at various ages - some only three years from maturity and return on investment.Private buyers lease plots on the commercial plantations for the time it takes the trees to mature. When the trees are harvested, the clients make money..
These environmentally sustainable Forestry and Agro-forestryLand Projects combine Socially Responsible Investment and Environmental Benefits and enable private individuals, companies, pensions etc, to participate - in return for commercial profit.
Green Organic Investment Solution
Forests have a vital role to play in countering global warming, a fact no longer in dispute. Trees help offset climate change because trees absorb carbon dioxide, one of the main greenhouse gases, better than anything else and store it in their trunks and roots for generations.But, all round the world, forests are being cut back through indiscriminate illegal logging, and new trees are desperately needed to replace them. Commercial plantations help relieve pressure on the existing rainforests as well as providing income for the communities living there. Some of the species grown by Oxigen can provide returns in excess of 20% per annum IRR, and forestry has consistently outperformed the stock market for the last century.
3 Million Tree to be Planted in the battle against Climate Change
By adding a commercial aspect to reforestation and the battle against climate change it is possible to harness the environment and make money. Our Forestry Plantation Partners are planting 3 million new trees in South Kota Kinabalu in Sabah, East Malaysia, near to Brunei. The land will be used in an ecologically responsible way through sustainable rotation, which means planting and harvesting tree crops on the same sites. It includes employing the pioneering practice of agroforestry so that crops can be planted underneath the forest canopy such as tea, lemongrass, dragon fruit, and pineapples, creating maximum usage of the land reducing pressure on further deforestation and improving biodiversity. The project is therefore a major contribution to the battle against climate change and thid plantation alone once complete will remove over 5.7 million tonnes of Co2 from the atmosphere per annum and store over 1.6 million tonnes of carbon in the trunks, whilst at the same time enabling governments to ban illegal logging from the natural forests and provide jobs for the families. In these regions it is the only source of income for the indigenous populations and by giving them an alternative we can collectively help solve a fundamental cause of deforestation.
Working with Governments and other official Agencies our Tree Plantation and Agro-forestry Partners are also developing new plantations in Sri Lanka, Malaysia, Brazil, Thailand, Guyana, Australia and other parts of the world. This enables private individuals to buy plots of Forest - high value tropical hardwood trees such as Teak, Agarwood, Mahogany, Sandalwood etc. Private individuals also have the opportunity to lease land plots which combines forestry AND agricultural (Agroforestry) projects.This land will be used to grow high value crops such as Maize (Sweetcorn) and in return, the client (leaseholder) will be paid a fixed rate 15% income each year can be paid quarterly, six monthly or annually). The land is also expected to rise in value over the coming years and leaseholders can sell back their land lease with a 10% profit.
Thus.... by investing in Eco Friendly Forestry and Agroforestry projects you can quite literally.... watch your money grow!
Please note, this is a "Retail Opportunity" and as such tree owners are not buying into a fund or any other form of collective investment scheme. Owners have full title to their Trees, Land Leases etc, and have complete control over when their trees will be harvested. The profit is based on the full value of those trees at maturity or during their growth. In addition, annual forestry reports are provided for all tree owners, which are overseen by BDO Stoy Hayward, Colombo.
Buying trees not only benefits the environment - it also makes good commercial sense because tropical hardwood trees increase in value as they grow.
That's where the Opportunity is....
"If what I say resonates with you, it is merely because we are both branches on the
same tree."- W. B. Yeats
Tropical hardwood trees have a high market value and the potential to produce outstanding financial gains for owners -in harmony with nature and the environment. Private investors can also purchase prime stock, forestry packages of established Teak Tees that are 12 years old and can be harvested when the trees are 19 years old.
A Win Win Green Approach - Reducing CO2 and Sharing Profits
Forests could offset up to 46% of human carbon emissions while simultaneously driving
economic growth. The Intergovernmental Planel on Climate Change (IPCC) points out that terminating deforestation is the least effective way to use forestry to reduce emissions. Expanding forestry, while ensuring growth through sustainable management as well as afforestation and reforestation, would offset two to three times more carbon than simply ending deforestation
"A society grows great when old men plant trees whose shade they know they shall
never sit in." -Greek proverb
Growing Trees using - Cutting Edge Tissue Culture Technology
As well as using organic seed techniques, conventional forestry methods are enhanced by cutting-edge "tissue culture" technology. Using this method it is possible to produce healthy valuable trees in a shorter space of time - and outstanding financial gains for the tree owners, in harmony with nature.The Science of Forestry summary will explains further about this process.
Why invest in Forestry?
There are two main reasons why more people are now investing in forestry.
Firstly, It is important for all of us - and our children. Global Cooling is an essential and time sensitive process, necessary for the restoration of balance to our environment - its reliance upon trees cannot be understated. Forests can offset climate change because trees absorb carbon dioxide, one of the main greenhouse gases. But, all round the world, forests are being cut back through indiscriminate logging, and new trees are desperately needed to replace them.
Secondly, in today's changing world many people feel let down by conventional financial investments and prefer to explore "fresh" types of opportunity. By owning "hard assets", which are tangible (you can visit your trees any time) they will appreciate as they grow. Owners can choose when they want to harvest their trees, which will then be sold for a profit. New trees are then planted on the same land. Forestry has been one of the highest performing asset classes for over 50 years (5 times higher than Equities & Bonds in 2007 according to FT.Com).
"Forestry was the best-performing asset class of 2007, delivering returns of 31.6%", according to the IPD index (Investment Property Databank) www.ipd.com
Insurance
The forestry plantation company will carry Fire Risk cover underwritten by Lloyd’s of London and Public Liability cover on all their plantations. In addition they carry their own stocks of plantation trees and undertake to replace any trees that fail to grow for any reason. We believe that they are the only sustainable forestry plantation company offering this level of insurance to protect the client’s investment
Constitutional Guarantee for Investments
The foresty packages offered are located on plantations throughout Malaysia where tropical hardwood grows in near perfect conditions, including Sri Lanka. The Sri Lankan Government’s forestry department maintains 45,336 hectares (113,340 acres) of teak plantations for investment. Teak has been grown and traded in Sri Lanka since 1680. 3.3 million m3 of teak is traded in the global market each year with India being the largest consumer followed by China. Asia, China, India & Indonesia supply 90% of this market. Bilateral Investment Protection Agreements exist between Sri Lanka and the following countries: Belgium/ Luxembourg, Canada, China, Denmark, Egypt, Finland, France, Germany, Iran, India, Italy, Indonesia, Japan, The Republic of Korea, Luxembourg, Malaysia, The Netherlands, Norway, Pakistan, Romania, Singapore, Sweden, Switzerland, Thailand, the United Kingdom and the USA.
What does Board of Investment (BOI) Approval Mean?
When you sign an agreement with the BOI, the specific incentives granted to an eligible company, which may include tax holidays or preferential tax rates, exemptions from customs duty and foreign exchange controls, remain valid for the entire life of the enterprise.
Money really does grow in trees!
Many products perport to be environmentally friendly but this is an opportunity for people to invest in something "real", a socially responsible project that is genuinely green, good for the planet, which returns healthy profits for the tree owners.
Tangible safe "hard asset" with historic low risk & high return
Range of Forestry/Tree packages available, including established 12 year old Teak Trees that can be harvested in 7 years
£10,000 invested in Teak Saplings typically returns of approximately £256,000
Tree owners can start to benefit from returns on certain species after just 4 years
There is a high and growing worldwide demand for tropical hardwood
New species like Argarwood mature after just 6 years and produce valuable Oud resin
Teak contract prices have risen by 300% in the last 4 years according to the ITTO (International Tropical Timber Organization).
Large institutional investors like US pension schemes and unit trusts have been including Forestry in their portfolios for many years.
Harvard University has invested 12% of its total endowment funds in timber.
Exit Price can be calculated down to last "£" and owners have full control over thier trees
Income Tax, Inheritance Tax and Capital Gains Tax advantages
Forestry and Agro-forestry is a SIPP Acceptable ECO Friendly Investment
Featured in FT, Bloombergs, Investors Chronicle and the Wealth Managers handbook
"When you see the trees swaying to the tune of a gentle breeze... think of it as a dance
in your honor." - Marjolein Bastin
The Value of Teak Trees
Teak is the common name for "Tectona grandis", a large deciduous tree of the family Verbenaceae and is one of the world's most valuable timbers. During the past 20 years supplies of teak wood from natural forests have dwindled, consequently there is an increased demand and increased interest has developed in the establishment of commercial teak forest plantations.
Teak has been the pillar of the shipbuilding industry for centuries. The decks of the Titanic were covered in Teak, and the wood is as good today as the day she sank on 1912. Teak is also used in the Middle East oil industry as one of the very few timbers that can withstand the punishing heat of the desert and will not readily catch fire. Teak can withstand harsh chemicals, and is resistant to fungi, rot and termites.
The Value of Agarwood Trees
Agarwood (Aquilaria Tree) is the most expensive, the most reputable and the rarest wood in the world. It produces a resin called Oud and for this reason many experts say that Agarwood is the cash crop of the future. Endangered by the conditions and climate of the wild forest, the evergreen naturally emits a protective substance that infuses its bark with an intoxicating fragrance. This 'Oud', is bursting with a rich and exquisite aroma. Agarwood oil has been prized by sultans, sheikhs and explorers in the Far East for centuries. To this day, Oud is cherished and traded as a treasure more precious than red rubies and green emeralds.
Although most people in the UK, United States and Europe are not familiar with this aromatic resinous wood, its use as incense (called aloeswood) is mentioned several times in the bible.
Aquilaria trees are now protected in most countries and the collection of agarwood is illegal from natural forests. International agreements, such as CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora), accepted by 169 countries, is designed to ensure trade in agarwood products from wild trees does not threaten the survival of Aquilaria. Agarwood Tree
These Agarwood projections are based upon a conservative estimate of yield. Research carried out in the U.S. regarding Agarwood growth rates, in conjunction with the price of Agarwood chips, based on current and historical market values. There has now been an exciting scientific break through for growing Agarwood.The University of Minnesota has conducted the most comprehensive studies and come up with a technique that will increase production of the "Oud" by 5x. This will result in the trees being worth much more at harvest. The interest in Agarwood was reinforced at the 2nd International Agarwood Conference (March 2007, Bangkok) when Buddhist monks, Arabic perfumers, Japanese incense producers and Papuan collectors were just some of the cast of participants that came from more than thirty countries. The ‘world of science’ was also represented by wood pathologists, anthropologists, foresters, economists and laboratory analysts, each with their specific research interests.
Oud - a valuable product
Examples on the value of Oud products can be found on several websites. According to www.agarharvest.com 1 kg of the finest AAAA grade Agarwood chips will cost $2,599.00 USD. To put this into perspective even 1 kg of A grade chips would cost $1,169.00 USD. Agarwood oil is also at a premium with a 3cc bottle of AAAA grade oil selling for $165.00 USD. Again, to put this into perspective a even 3cc bottle of A grade oil would cost $84.00 USD. Also see www.oriscent.com
Some quotes from leading experts
"Indeed, as an asset class, timber - a renewable resource with a constant product demand - stands out as a remarkably stable investment" - Bloomberg Wealth Manager:
Forestry Funds leave others in the Shade - FT.com July 4th 2008
" Land should be a fundamental component of any investor’s portfolio” - Warren Buffet (The 20th Century’s most successful investor)
Call: 0845 050 5371 or 00 44 1204 592698
Email graham@forestryinvestment.org
Thank you for your valuable contribution into cooling our world
Disclaimer: Graham Stuart & Associates Ltd (GSA) is not regulated by the FSA and does not promote regulated products, nor give investment advice. GSA markets land and property based projects that are structured through our strategic partners. You should seek independent financial and/or tax advice on all information included in this web site prior to making any investment decision. All forecasts are based on historical performance and are purely indicative. The value of your investment may rise or fall. No guarantees as to future performance in respect of income or capital growth are given either expressly or by implication and nothing expressed or implied should be taken as a forecast of future performance. This is not an offer to participate in a collective investment scheme as defined in the Financial Services and Markets Act 2000 (section 235) and as such buyers have no access to statutory or regulatory protections including the Financial Ombudsman Service and the Financial Services Compensation Scheme. The information in this document is for illustration purposes only and does not constitute a formal offer. We are happy to discuss the forestry projects with your Independent Financial Advisor (IFA) or put you in touch with an IFA in your area who is familiar with the projects.
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