THE GREEN ECO-FRIENDLY INVESTMENT SOLUTION
About GSA
Graham Stuart & Associates Ltd (GSA) is a firm of independent Business Consultants (members of The Institute of Business Consultants) and has been established for over 20 years. GSA has several strategic partnership with specialist companies in the ethical forestry and eco land development sector.
Our Plantation Partners operate sustainable forestry projects throughout Malaysia and in the Sri Lankan regions of Kandy and Puttalam, with plans for expansion throughout South East Asia, Africa, South America and Australia. They are also a Board of Investment Approved (BOI) company regulated by the Sri Lankan Securities and Exchange Commission - the primary government body that facilitates and regulates all inward investments into Sri Lanka. Constitutional guarantee.
Their plantations in Kandy and Puttalam observe the highest standards of sustainable and fair trade policies. The two estates total 1100 acres with completion planned for September 2008. They are also working closely with Government ministries to establish other suitable sites for reforestation and agricultural projects including re-establishing existing Tea and Rubber plantations.
Our Plantation Partners have been working to develop the best way for forestry investors to benefit from future "carbon credit" revenues and is applying to get all its plantations recognised under the Kyoto agreement or whatever takes its place in future.
How are Harvest Maturities Projected?
Project harvest maturities are projected realistically. This means that Plantation Partners look at today's average harvest values for each type of wood. They then look retrospectively at the respective annual increases during the last ten years and use these as a guide when projecting potential future maturities.
That said, past growth rates are by no means a guarantee of those in the future - they are however the only "yardstick" one has in looking forward and should therefore be viewed realistically. The positive viewpoint here is that market values have consistently risen over the last century.
Why consider sustainable forestry plantations as an Investment?
Graham Stuart & Associates Ltd (GSA) and their strategic partners are committed to sustainable forestry projects. We offer the opportunity to ordinary everyday individuals to benefit from large commercial scale forestry projects - formerly the exclusive preserve of the large multinational forestry companies, pension funds and other financial institutions. By investing in sustainable forestry projects you have the ability to benefit from higher than average returns, are making a positive contribution towards the environment and helping pave the way to improving the environment of our planet.
Why Sri Lanka?
It's the perfect location. Nature has bestowed upon Sri Lanka some of the most favourable climatic and environmental conditions, making it ideal for growing the species of forestry referred to throughout this website.
The former Ceylon is one of the oldest colonial countries in South East Asia and operates a British style legal system.
The country is one of the region's fastest growing economies, with the most innovative and rapidly expanding stock exchange in the region. Sri Lanka is also home to some of the foremost forestry experts in the world with numerous universities specialising in forestry management.
The democratically elected government is welcoming and encouraging to eco-based foreign investment.
It is also home to the most important rainforest in South East Asia, Sereniya National Park, which is of major benefit to the region's ecosystem. 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. Teak is traded on the global market each year with India being the largest consumer followed by China. Asia, China, India & Indonesia supply 90% of this market. Sri Lanka is perfectly located to supply these markets and has a free trade agreement with India.
Why Costa Rica?
The World Bank has given Costa Rica an excellent bill of overall political and economic health. At its annual conference in El Salvador, the bank lauded the country as possessing "one of the most stable and robust" democracies in Latin America.
One thing that adds tremendously to Costa Rica's stability is its lack of an army. Back in 1948, the country abolished its military in favour of spending on universal health care. More North Americans live in Costa Rica than in any other Latin American country.
The government of Costa Rica is very encouraging to businesses starting reforestation plantations and offers various incentives. For example, if you invest in reforestation, you can apply for residency in Costa Rica.
What is the purchase process?
First, all clients need to decide on what they want to purchase after discussing their requirements with one of our forestry business consultants. This includes the opportunity to purchase Sapling trees or well established trees that are closer to harvest dates. Opportunities are available from £10,000. Once the order and paperwork has been been completed by GSA the Plantation Partners will confirm the plot allocation and issue an "Ownership Certificate" detailing the client's ownership of the trees plus a separate lease, in the client's name, for the land they are growing on. Payment can be made here in the UK in Sterling, Euros or US Dollars.
Our clients will be kept updated as to the progress of their trees via a quarterly Foresters' Report. We issue a full audit of all our plantations which will be independently audited by BDO Stoy Hayward, Colombo, on an annual basis. Any client can have an independent audit of their own plot at any time (at additional cost) via ourselves or any independent third party of their choice. We also encourage our clients to see our work and offer organised visits to provide the opportunity to inspect their trees, meet fellow owners and find out more about the people and culture in the local area.
When the trees are nearing maturity our clients will be advised of their approximate value and can decide when to harvest. There are a number of options from selling the harvested logs to having the wood processed and whatever their decision the client will receive the full value of their harvest less any pre-agreed harvesting or processing fees.
What are the benefits?
This is a "Retail Opportunity" and as such our clients are not buying into a fund or any other form of collective investment scheme and are not promised any specific profit. However, since they own their trees the profit is based on the full value of those trees at maturity or during their growth.Prior to making any decision all clients should seek independent financial advice. Land/Timber investment is not a regulated product and neither GSA nor the Plantations Partners are regulated by the FSA or authorised to provide any financial advice. However, we are happy to refer you to an Independnet Financial Advisor in your area if you wish. Please refer to our Disclaimer page for further information.
What if clients need their money back before trees are harvested?
Sometimes life can present unforeseen events and circumstances which require additional finance. There are several contingencies to assist you should you find yourself in this position, or merely want to exit your ownership prior to harvest. As you are the leaseholder of your land and the certified owner of your trees you are perfectly entitled to sell to whomever you wish - this could be friends, family or any other third party. The lease, title to trees and any management contract are all transferable.The Plantation Partners will be happy to offer your forestry portfolio to any number of our existing clients as well as new prospective purchasers who are considering the opportunity. As your portfolio will be nearer to maturity it will be attractive to other interested parties. So with all these options there is really no cause for concern if something unexpected should arise.
Are there any risks?
Please also see section above under "Insurance".
As with any living organism there are risks to consider. Fortunately these are few and far between and we do take steps to mitigate their effects:
- Forest fire: these are very rare in the humid tropics. Even so, we have special precautions in place to prevent serious damage to our plantations if ever there was a fire. We plan our plantations with appropriate fire breaks, have staff on site 24/7 that we train to deal with a fire and all our plantations have pumped water and fire fighting facilities available.
- Disease: there are a few well known pests & diseases that can affect our crops especially in the early years. Our on-site forest management team know exactly what to look out for and how to treat any problems as soon as they occur.
- Flooding & drought: water is a vital resource in managed forestry and it is the first consideration when constructing a new plantation. We build in dams, reservoirs, and pumping equipment so that we can retain or release sufficient water at will.
- Price collapse: As with any investment that relies on the sale of commodities, no guarantee can be given as to the exact future value of your commodities until they are ready to sell and indeed actually sold. Teak grown commercially accounts for 1% of global production, with the balance coming from wild stocks which are currently being outlawed from felling. Agarwood is now moving away from being sourced from trees grown in the wild and into plantation grown stocks. So both have a market which is currently growing and will continue to be in demand for generations to come. In addition the world's current population explosion is driving up demand (and prices) for all commodities.
What if the plantation company goes into liquidation?
Firstly, all of the plantation companies GSA deals with are commercial organizations and forestry is a highly profitable business. Some of the projects are also held in trust so protected in the worst case scenario. However, the main thing to remember is that you own the title to the land along with your lease and you have ownership certificates for your trees. You even have rights over adjacent property toget access to your land. So if either company goes into liquidation you will retain the land and trees until they are ready to harvest.
Why own trees?
There are many factors to consider when buying; security and profit are obvious considerations and we perform well on both these counts. However, there is something rather nice about owning trees. They are natural living things; you can walk amongst them and watch them grow. You can smell and breathe the clean air and enjoy the peace of the forest. We believe that growing trees is good for the planet and more fulfilling than some other traditional investments. More than anything you are contributing not only to the future of our environment but also the communities who live and work around our plantations.
How can I be sure that Agarwood will be in demand after 6 years?
The Plantation partners we work with intend to be the largest commercial Agarwood plantation in Sr Lanka you can be sure that we are utilising the services of the most eminent specialists within the industry - including Enviro2's scientific board. Additionally, we closely monitor the marketplace in general enabling us to secure future contracts for supply of raw product.
They are also establishing Agarwood Exchange as a free trading forum for growers and buyers of Agarwood globally to advertise and network with each other regarding the growing Agarwood market place. It is also worth noting that, due to the world's current growing population and emerging countries, particularly in Asia where the demand for Agarwood is already high, the future demand for Agarwood products is set to increase dramatically.
When my trees mature how do I realise my capital and profits?
We suggest you consider engaging our preferred management company who have experience in this area. You are however, at liberty to appoint any one of a number of excellent forestry management organizations in Sri Lanka if you prefer. Once your trees have reached maturity age they are ready to be harvested and the raw product be it timber or resin sold into the wholesale marketplace - for example companies who supply refined based products to manufactures such as furniture makers, house builders, incense manufactures etc.
As you already are aware these are burgeoning marketplaces with an ever increasing and favourable supply and demand scenario. Once your raw product has been harvested and sold, you will receive your current day market value cash remittance directly from the forestry management company - this can be paid to any account and in any location of your choice!
Is this a good investment opportunity?
We think so but then of course we are biased. It is up to each individual to decide for themselves. However, consider this, the demand for all usages of this naturally occurring phenomenon are predicted to increase during the coming years at an unprecedented rate!
Carried out in a responsible and sustainable fashion, forestry can not only fortify your personal wealth - but also play a major role in cooling down our precious planet and restoring nature's fragile balance for the generations to come!
Can I buy through a Self Invested Pension Plan (SIPP)?
Yes. Many UK SIPP provider will accept Forestry investment including the Eco Land & Property SIPP, which has been established to provide a low fee structure option. To be put in touch with a trusted IFA who can advise you on this call 0845 050 5371 in the first instance.
I want to invest in trees - what happens next?
Once you have read through the full information pack, the FAQ's and discussed it with GSA clients need to decide how many trees they wish to purchase. There are several different packages and it is important that you select the right one to suit your personal requirements. Opportunities are available from £10,000. Please call 0845 050 5371 to discuss your requirements or to request further details.
Summary
Forestry sits within its own unique sphere and it is rare indeed to find an opportunity which presents little or no downside negatives.
Today forestry is bigger than ever, diversifying into hundreds of industries worldwide.
For example eco friendly homes are becoming increasingly popular and leading suppliers of these homes utilize huge amounts of timber in the construction process. This is just one example of how timber is utilized.
In fact the United Nations Food and Agriculture Organization tell us, "World consumption of industrial wood is predicted to rise 60% over the next 5 years".
0845 050 5371
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