Panama Timber Investment
“Timber is the only asset to have grown in three out of the four market collapses of the 20th century, has risen steadily in price for 200 years and has returned an average of 6.5% a year for the last century.”- Jeremy Grantham US fund manager.
In the current property and financial climate, sustainable forestry projects offer a low-risk investment opportunity with additional environmental benefits. The Princess project is the only timber investment to offer guaranteed returns* payable in just 5 short years.
The Princess Tree, officially known as Paulownia, is recognised as the fastest growing hardwood in the world. The timber it produces is durable and strong, lightweight and fire resistant. Unlike other Tropical timbers, the demand for Paulownia is not being met by abundance of plantations and, as a carbon reducing facility; it absorbs more CO2 than any other Tropical plantation tree. The world market price, supply and demand, speed of growth and quick return on investment make Paulownia an ideal commercial plantation tree. Moreover, a buyer for the timber has already been found with a bonded purchase guarantee in place, ensuring your investment return is completely guaranteed.
Private investors are invited to join in this project by purchasing individual plots of land providing net returns of up to 16.8% per annum over a total investment period of twenty years (applicable to investments made before the 1st January 2010). Not just an exceptional financial investment, buyers can enjoy a variety of tax breaks, assurance of security and enjoy the environmental benefits and community initiatives facilitated by the project.
Key Points
- Low investment amount from just $30,000USD per unit*
- Gross return of 145,200 US$ over 20 years*
- Guaranteed returns of up to 16.8% p.a. for 20 years*
- Returns paid every 5 years
- Tax advantages
- SIPP qualified
- CO2 climate change mitigation
- Benefits to local communities
- Land held in trust
- Timber buyer with bonded guarantee
*Based on introductory purchase price of $30,000 USD applicable to all purchases made before 01.01.2010, please see “guaranteed returns” section for details and definitions.
Investment Returns
- The investor will receive 660 trees per hectare of land purchased
- A lease will be registered in the investors name for a period of 21 years, which will produce 4 timber harvests
- A purchase price of $275USD per m³ of timber is guaranteed by World Paulownia LLC should the investor wish to take this option
- A 5 year old Paulownia tree produces at least 0.2m³ (projected 0.32m³) of processed wood
- The total m³ produced per plot over the 4 harvests is 528 m³
- Based on a $30,000USD investment (available until the end Dec 2009), this will provide a return of $145,200USD per plot
- The harvesting, processing and transportation will be carried out by a management company of your choice (unless you wish to organise it yourself) which is likely to charge 10% of the value of your timber sales
- After this has been deducted the investor will receive a gross return of 21.8% per year
- This produces a net return of 16.8% per annum over 20 years, after the initial investment amount has been deducted
