This is a "Win-win" investment because you the client makes a profit, while creating new jobs in Panama as well as the long-lasting environmental benefits such as tropical wood is binding of CO2, which helps reverse the damage from carbon dioxide pollution and producing quality hardwood thus reducing future pressure to cut natural rain forests.
We feel we offer the best options for investments in reforestation investment projects. We will offer well managed projects at the best prices per hectare.
The law of the land
1. All wood that is harvested within the project (the terms of "harvesting" are spelled out in the management plan provided by the forestry expert) are exonerated from many taxes, including export taxes, for 25 years.
2. Equipment, which can include vehicles, heavy equipment, and any other direct investment into the reforestation project, are exempt and can be brought into the country tax-free.
4. Perhaps the largest incentives for investors, however, are the potential returns. It is clear that the existing supply of wild teak is fast diminishing in traditional teak-producing areas such as India, Myanmar (formerly Burma), and Thailand. |
In a plot of one hectare, (approx. 2.4 acres) We plant 1,100 teak trees. This high density planting give tall straight trees and more overall yield per hectare. Some thinning of weak trees is done at four years, and at seven years the trees are thinned about to 700 per hectare. At 15 years they are thinned to about 400 trees per hectare and at 18 years they are thinned to 260 trees per hectare. Final harvest is ready in about 20 to 25 years. You get whatever profit is derived from the thinnings at the time of the thinning. At this time there is very little value in thinnings prier to the 15 year thinning. So for our calculations we leave that profit number at 0. The 15 year Thinning would yield about $10,000 if we assume a very conservative 2% annual inflation rate in the price of Teak. The 18 year thinning will yield about 40,000 bdft of grade 2 and 3 teak which will yield a net profit of about $15,000 assuming a 2% inflation rate. At 22 years the 260 remaining trees will produce a yield of 260 cu mt per hectare or an annual yield rate of 12 cu mt per hectare. Mature teak based on today's values is selling for $500 per M3 so the final harvest will yield $130,000 return from sales of the raw logs. The added safety benefit that in an inflationary time both the price of the teak and value of the land will appreciate thus protecting the return on your investment.
On this visa teak investment it is not only an investment but a visa that you are obtaining. The return on your investment will be determined to a large degree by the amount of teak you get for your investment and land values which are effected by the location of the project that you are investing in. At present we are selling lots in our Penonome project where land value is $3 to $4 per M2. So the lots with trees are selling for pretty close to land value. This is an exceptional value at this time. There are 14 lots left available in this project. For more information on investing in teak or on the residency visa investment packages please contact Jeff@Panamaforestry.com. |