Wednesday, 9 November 2011

Why are Forestry Investments so popular?

By Gemma Stephenson


Over the past few years the unstable global economy has stimulated a new buzz around alternative investments, with a number of people entering this market as a way to sidestep the uncertainty around the usual forms of investment.

Forestry investment has proven to be both a profitable and ethical opportunity for investment funds for many years and has remained strong - with an increase average of 6.5% year on year for the past 10 years - throughout the global economic downturn.

For many investors who are searching for higher returns, alternative investments are outdoing other asset classes and are now a staple of many investors portfolios due to their low risk factors a good forecasted return.

The most common and valuable hardwood in Asia is Teak. Due to its strength and durable nature, it makes up around 85% of use within the furniture industry.

Because of a combination of reasons such as its favourable supply and demand characteristics, fast physical growth rates and high market price, the demand for Teak investment has risen in recent years.

In the past forestry investment was only available to big investment funds and banks, but now a new elite forestry investment has been split up into more manageable units for private investors.

The increase in demand for forestry investment has led to Experience International's launch of a World Exclusive Elite Teak Tree Programme, with investment packages starting from only 30,000 with projected 10 year returns of 158,000.

"We're pleased to exclusively launch our World Exclusive Elite Teak Tree Programme to the international market," Steven Worboys, MD of Experience International comments.

"For an investment of 30,000 buyers will obtain 100 elite tissue culture teak trees planted in 2004 under the firm forestry management rules, using tissue culture teak plants made in laboratories by world tissue culture experts."

With attractive returns and guaranteed performance, this alternative forestry investment will appeal to any investors looking to enter a new form of investment.

In terms of figures, Teak has seen a 6.5% average increase year on for the past 10 years. Applying this same rate creates returns over 158,000 over a straight 10 year time period.

Experience International can provide potential investors, who want a greater amount of liquidity in their portfolio, with an early exit strategy where they will be able to harvest some or all of their stock at any time from Sep 2016 up to the final delivery date in Sep 2021.

This flexible forestry investment is secured by Trust administered by Independent Trustees from London Law Firm and offers a performance guarantee.

In a market where the demand outstrips supply, it's clear to see why many investors are entering forestry investment instead of other options.




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