Teak investment

Teak Investments Sri Lanka

Annualised ROI of 161% You can invest with cash or via a SIPP from Just £11,000

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Durable Beauty Key investment dataTeak is one of the most beautiful and durable of the tropical hardwoods. Its true

value as an investment lies in its versatility. As practical as it is valuable, these

qualities are reflected in the many uses to which teak has been put.

The furniture industry accounts for around 85% of teak use today. However it is

also the essential timber in ship and yacht building, because its high oil content

gives it properties that other woods do not possess. Teak is used in joinery,

cabinet-making, turnery and panelling, in the carving of ornaments and the

manufacture of tanks and vats requiring high resistance to acids.

There is now an extreme shortfall between demand for teak and its supply. Its

value has made it especially vulnerable to illegal logging, which has depleted

supplies. Some governments have responded by making teak exports illegal, and

this in turn has increased the cost of this precious tropical wood.

For several decades teak has demonstrated appreciation rates that consistently

exceed the rate of inflation. Teak trees are a tangible asset, free from the

fluctuations of the international markets. Such conditions ensure that teak will

continue to be a much sought-after commodity and a profitable investment for

many years to come.

Investing in teak also helps to secure the future of this rare but essential hardwood

and protect the tropical forest environment where it thrives.

Insurance cover after year five

Your asset is registered in your own name

Fully inclusive of maintenance fees

Grower has over 20 years experience in forestry

UK based company

Tree exchange programme

Guaranteed tree replacement for the first five years

Minimum investment £11,000

Investments open to private clients and institutions

Invest with cash or via a Self-Invested Personal Pension (SIPP)

Medium to long term return up to 17% IRR

All plantations are freehold

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Call us +44 (0)20 3012 0306or email [email protected]

You can invest with cash or via a SIPPAnnualised ROI of 161%

“Money does not grow on trees – Unless you are in the timber business”Financial Times

Why invest in Teak Forestry?

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An Asset of Substance As your trees grow, they become an ever-more useful and

valuable asset. When they reach harvestable maturity, their

value will have risen very significantly compared to the initial

investment. Over a 15-25 year period, there will be a strong

and consistent increase, made even stronger by inevitable

inflation in the price of teak.

The rarity of teak ensures its value to investors. At the same

time, a teak investment safeguards this hardwood and boosts

the local economy by creating stable employment. Teak

Investments Sri Lanka promotes development and growth,

whilst conserving areas of forest vital to the planet as much as

the locality. Our growers’ practice of sustainable forestry helps

hold together the communities that have lived and worked in

the teak growing area of Sri Lanka for many generations.

Teak Investments Sri Lanka is likely to yield high returns of the

kind usually associated with more speculative investments.

However the element of high risk that characterises such

investments is absent from our teak product. Your asset’s

growth is immune to the ravages of the stock market. And

unlike almost all forms of real estate, a teak investment

does not require ongoing maintenance payments, capital

improvements or management fees.

“As an asset class, timber – a renewable resource with constant product demand – stands out as a remarkably stable investment” Bloomberg Wealth Manager

Teak is a substantial product, demand for which is not only

reliable but rising fast. It is a worthwhile investment for the

long haul, offering security combined with good financial

returns – two rare qualities in the present

commodity markets.

Growing demand for teak is now combined with more limited

growing areas. These geographical changes are brought

about by deforestation and illegal logging. Yet the shrinking

international supply is combined with growing

consumer demand.

The InvestmentThere are two investment packages, one at £11,000, the other £18,000.

Both are one-off payments, fully inclusive of management and

maintenance fees. The parcel of land in which you invest is part of the

growers’ freehold teak plantation and is leased to you for the duration of

the teak trees’ growing schedule. Private plantations are available in 25

acre sites and bespoke investment plans are welcome.

The first option (£11,000) offers an annualised Return On Investment

(ROI) of 99% over the full planting timeframe of 25 years. The second

option allows you to invest £18,000 and over the full timeframe offers an

annualized ROI of 161%.

Trees that fail to thrive are replaced by the growers during the first five

years as part of the investment package. After this time, the trees have

full insurance cover as they grow towards maturity.

Predicted returns are realistic, rather than speculative. The growers

combine transparency with expert knowledge of teak management

gained over more than twenty years experience in forestry. Their

calculations are more accurate than those of other teak products on

the market because they take account of both taper and wastage. Our

growers have Sri Lanka Board of Investment (BOI) approval, which

safeguards clients’ investments. They have a positive and long-standing

relationship with both the government and the communities they serve.

Your asset – the land and the trees it contains – is registered in your own

name and you can invest with cash or via a Self-Invested Personal Pension

(SIPP). You will receive an annual forestry report from the grower. There

is a good exit strategy: should you wish to sell the land on or transfer to a

third party, you are free to do so.

The locationThe grower’s plantation is located near Sri Lanka’s western coast,

in conditions ideal for teak growing and harvesting. The area has

remained free from political conflict, but the recent peace settlement

has put the whole country back on the global economic radar.

Sri Lanka’s government is fully committed to clamping down on the

illegal logging of teak forests. This greatly increases the desirability

of investing in sustainably farmed teak in Sri Lanka.

Sri Lanka now has a stable, democratically elected and accountable

government, which is welcoming foreign investment, especially

eco-investments which help preserve its great natural beauty and

its resources. There is a focus on sustainable forestry, farming and

tourism, making full use of the benign tropical climate moderated by

gentle ocean winds.

The former Ceylon, Sri Lanka is in the Indian Ocean, south-west of the

Bay of Bengal and south-east of the Arabian Sea. It is separated from

the Indian subcontinent by the Gulf of Mennar and the Palk Strait. A

former British colony and active member of the Commonwealth, its

legal system operates on principles similar to the United Kingdom.

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Financial breakdown Next steps

The information in this document (including but not limited to, photographs, illustrations, plans, dimensions, descriptions, tables, projections and prices) are for guidance only. While every effort has been made to offer current and accurate information, errors can occur. Eco Investments makes no warranties or representations as to the accuracy, correctness, reliability or otherwise with respect to such information, and assumes no liability or responsibility for any errors or omissions in the content contained in this document. Within this document you may find links or references to third party material and third party web sites. Eco Investments accepts no liability in respect of the contents of such material or sites. Eco Investments should not be taken to be endorsing, publishing, permitting or authorising such materials or sites. Eco Investments is not a party to, or responsible for, any transaction concerning goods or services available from such third party materials or web sites. Eco Investments will revise the information; services and resources contained in this document from time to time and reserves the right to make such changes without any obligation to notify past, current or prospective visitors to this document.

The content relating to the past and/or current performance of an investment is not necessarily a guide to its performance in the future. The value of investments or income from them may go down as well as up. Prices quoted may be based on a conversion rate when the document was created and may vary. This is not a regulated investment for the purpose of the UK FSMA (2000) however as a founding member Eco Investments adhere to and follow the Code of Conduct of the Association of International Property Professionals (AIPP).

The information contained in this document should not be construed as financial, tax, legal or any other professional advice or service. You are advised to consult a financial and/or legal professional advisor from suitably regulated sources.

Except where noted otherwise, all material in this document is Copyright © 2010 Eco Investments. All rights reserved. Without the prior written consent of Eco Investments, no permission is granted to copy, distribute, modify, post or frame any text, graphics, or logos.

Small print

To purchase or discuss this investment in greater detail please contact us

call +44 (0)20 3012 0306email [email protected]

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Investment Option One (300 trees) - Investment £11,000 inclusive of maintenance fees:

Investment Option Two (500 trees) - Investment £18,000 inclusive of maintenance fees:

Profit

Year

£12,017

10

£56,764

15

£157,314

20

£435,808

25

ROI 109% 516% 1430% 3962%

Annualised ROI 11% 34% 72% 158%

IRR 9% 14% 15% 17%

Profit

Year

£20,362

10

£94,940

15

£262,524

20

£726,680

25

ROI 113% 527% 1458% 4037%

Annualised ROI 11% 35% 73% 161%

IRR 9% 14% 16% 17%

Present tree value Value at Maturity

Age

10

ValuePrice GrowthRate

PerTree

Investment Value

Harvest Cost (5%)

Net InvestmentValue

£45 6% £80.76 £24,228.37

15 £99 6% £237.77 £71,330.66

20 £184 6% £590.58 £177,173.07

25 £365 6% £1,567.75 £470,324.09

£1,211.42 £23,016.95

£3,566.53 £67,764.12

£8,858.65 £168,314.42

£23,516.20 £446,807.88

Present tree value Value at Maturity

Age

10

ValuePrice GrowthRate

PerTree

Investment Value

Harvest Cost (5%)

Net InvestmentValue

£45 6% £80.76 £40,380.62

15 £99 6% £237.77 £118,884.43

20 £184 6% £590.58 £295,288.45

25 £365 6% £1,567.75 £783,873.48

£2,019.03 £38,361.59

£5,944.22 £112,940.21

£14,764.42 £280,524.03

£39,193.67 £744,679.8

Teak investment

Real Estate

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