Forest Investment In Sri Lanka
The world’s tropical rainforests 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 rainforests, 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 is 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 this excellent opportunity. There are three key factors which make investment in teak a uniquely interesting proposition:.
- Firstly, there’s the physical growth of the teak, 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, there’s 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% pa 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 specialise in teak and only teak. Whilst there are many other forestry and Agroforestry investments available we believe that teak is the only forestry product that offers a truly reliable investment proposition.
