Plantation Asset Management Limited now offers one of the best opportunities for private investors to add long-term value accreditation to their portfolios by owning their own teak plantation on specially selected land in Brazil. Projected returns - based on historic price data and industry production averages - show that £10,000 invested now will produce a total return of £140,000 over 25 years. These returns reflect only 5% annual price inflation for teak wood, which has in fact seen average annual price rises of 5.2% over the past 30 years.
And all this comes with the major advantage that Capital Gains Tax and Inheritance Tax breaks exist for all forestry investments, so that you can lock away assets for your retirement, or your children and grandchildren without worrying about the long-term tax implications. The tax advantages will also boost overall returns even further. So, whether you are planning for retirement or long-term savings goals, such as university and college fees, planting teak now will ensure you meet your targets. In this offer from Plantation Asset Management you will also have the protection of full insurance of your trees against any fire or storm damage. This insurance is built into the capital cost of your investment, and comes with a warranty that ensures the nursery company responsible for initial planting will compensate you if more than 20% of the teak saplings die within the first year. Your land will be purchased on a 30-year lease, and individual investors will own their leased land and trees enabling investors to choose their own exit timing. Management of individual plantations will be at the choice of the investor, from a choice of three local forestry management companies - all well qualified, experienced and known to Plantation Asset Management.
Because of its strength, durability and weather-resistant properties, teak wood has been highly-prized and valued for centuries and remains a key component of modern construction and design. The wood is used in the making of floors, outdoor decking, outdoor furniture, solid doors and expensive decks for boats, as well as high-grade indoor furniture and fittings. Currently, there is strong demand for teak across China, Europe, India, Japan and the USA, and world consumption of industrial wood is expected to grow by 60% in the next five years, so that demand will overtake current potential supply in 2015 (source: United Nations). Thus, investment in teak wood now is a priority for forward-thinking investors.
Hard Wood = Hard Asset = Hard Cash
Teak is relatively fast growing, maturing in 10-15 years, and most furniture makers suggest teak wood aged between 12-15 years is ideal for their business - at this age teak has all the durability and weather resistance but is more easily workable than fully matured wood. Younger wood still has its uses, particularly at the cheaper end of the furniture spectrum and for fencing and light construction, whilst fully mature wood is the most valuable. Peak returns for teak are usually projected at 20-25 years, which is why Plantation Asset Management Limited has structured its offering on a 25-year plan, in which investors can exit after just 5, 10, 15 or 20 years. We will buy back your land and trees at cost + 5% per annum or you have the option to sell via our website trading platform or to a third party at any time. The offer comes with a low minimum investment of just £3,450 - including the plantation management fee. Investment is based on plots of 1/10th of a hectare (roughly a quarter of an acre), and investors can buy multiple plots subject to availability. Unlike many other forestry products there are no other further or on going costs/fees. This is a unique proposition. Management costs, including insurance, of the plantations are built into your investment, and you will receive regular information on the progress of planting and growth to be provided by the project managers. You are also free to visit your plantation and meet the farm managers and inspect your trees.
