Sapling Teak
"Someone’s sitting in the shade today because someone planted a tree a long time ago."- Warren Buffett
Plantation Capital Plc is offering clients the opportunity to invest in one of the tropic’s most valuable sources of timber - teak.
Teak (Tectona Grandis) is renowned for its hardness and durability and has established itself globally as the premier high value wood for furniture products. Our teak sapling plantations are located in the tropical region of Sri Lanka, which offers the species an excellent environment to mature in. We cultivate from selected certified seed and adhere Forest Stewardship Council (FSC) guidelines. Our forest managers have over 30 years experience in the cultivation of teak with plantation rotation expected at 20 years and proposed thinning at years 10 and 15.
This particular opportunity should be viewed as a long-term investment, with the aim of achieving returns at years 10, 15 and 20 from the date of purchase. Whilst considering the merits of this proposal please note the following points below. If you require further detailed information, including costs and a forecast, please feel free to register your contact details on our ‘Contact us‘ page or our quick contact form to the right.
- Demand: Teak remains in high demand and is particularly popular in the emerging economies of China and India. In 2009 according to the International Tropical Timber Organization (ITTO) India imported 87,290 m3 of sawn wood and China imported over 7 million m3. The ITTO also reported in 2003 that the supply of hardwood timber from natural tropical forests exceeded 100 million m3 per year.
- Supply: At the moment more than 95% of the world’s teak comes from non-sustainable tropical sources. Since the concerted effort to eradicate illegal logging of tropical forests, supply of teak has fallen dramatically. Consequently, the demand for ethically-sourced teak has grown and it is forecast to continue to grow over the medium to long-term.
- Biological Growth: As trees grow they add volume, which in turn adds value. Timberland can increase in value even if land and timber prices remain constant because the volume of standing timber increases. This volume increase can also help timberland hold its value even if land and timber prices are declining. The diagram below helps demonstrate the key drivers in the determining the value of a tree.
Next Steps
- Before any purchase is made you are required to register your interest either by phone or email, details can be found in the Contact Us section of the website.
- The investment will be explained in full and will include price points, marketing material, forecasts and analysis.
- Our investment consultants are fully-trained and pride themselves on their knowledge and experience within the sector. Each has visited our plantations in order to appreciate the operations in practice.
- Once you are comfortable with the product, the company and the investment consultant you will be required to fill in an application form and the purchase cycle will begin.
