Innovative savings
Become the owner of a TEAK plantation
NEWS: 7,000 seedlings for plot n°4
July 2021
A profitable investment
AN INCREASING DEMAND
A LONG-TERM INVESTMENT
A PROSPECT OF HIGH RETURNS
What product are we talking about?
Teak is a tropical tree of the Verbenaceae family. It produces a precious and rot-resistant wood, recommended as much boat decks’ manufacture as for garden furniture and recently for constructions. Teak is highly prized in global markets for its beauty, robustness, stability, and durability. Recognizing its importance, ITTO commissioned experts from IUFRO, FAO, and the TEAKNET network to conduct a global study on best practices in the conservation of teak genetic resources and the sustainable management of teak forests in Africa, Asia, and Latin America.
The dressing of terrace
Furniture
Pleasure boats
Residential floors
Ethical and sustainable investment
%
Sustainable development
Responsible and concerned with preservation
Creation of plantations
No forest destroyed. No green deserts.
Resources for Families
Plantation creation generates many jobs
Controlled production avoids sampling in tropical forests
No environmental nuisance
Maintenance operations are essentially manual
A 100% Sustainable Development concept
“Teak Investment” combines the search of profits and Sustainable Development. It concerns responsible investors attentive to environmental preservation who want to diversify their assets outside the traditional financial schemes.
Resources for many families
We have set ourselves very strict specifications both environmentally and socially in accordance with the requirements of the main international bodies and the Ministry of the Environment of Costa Rica.
Teak plantation generates many jobs. Employees receive a salary that respects Costa Rica’s labor laws. We also contribute to Costa Rican Social Security.
An alternative to deforestation
Every day in the world 20,000 ha of forests are destroyed. The production of exotic timber from plantations avoids withdrawals from natural tropical forests and the destruction of fauna and flora.
Creation of Plantations
Prior to the land acquisition we validate the quality of it. The planting of young Teaks is necessarily carried out from June to July which corresponding to the rainy season in this region. Thus, young seedlings can benefit from several months of humidity before facing the dry season from December to April. The seeds come from selected trees (tectona grandis). A specialized nursery prepares the seedlings as the planting progresses.
No forest destroyed for plantations
Plantations are carried out exclusively on grazing land that was deforested a few decades ago, when ranchers were encouraged to expand their livestock in order to export meat to the United States. Since then, Costa Rica has completely changed its orientation and is instead encouraging reforestation and the protection of the remaining forests.
No environmental nuisance
Maintenance operations are essentially manual. In addition, reforestation prevents soil erosion.
RISKS
Fire & Cyclones
Teak is a very resistant tree. After the first years, he is no longer afraid of fires. Our plantations are not located in “risky” areas and are constantly monitored.
The teak plantations are all located on the Pacific coast which, unlike the Caribbean coast, is not directly affected by cyclones. Teak plantations are not located near volcanoes, nor in areas at risk of flooding or landslides. They are located at an altitude of between 100 and 500 meters and several kilometers away from the Pacific coast.
Diseases, insect attacks
This kind of development is uncommon and, if so mainly concerns very young trees. The plantations are under constant surveillance in order to trigger an appropriate treatment if necessary. The environmental specifications are such that no preventive treatment is applied.
Social and political risks
Costa Rica’s development has been going on for several decades. The political climate is moderate. The country does not have an army, hence the risk of coups or conflicts..
High political and social stability
Costa Rica has about 4,200,000 inhabitants per 51,100 km2. It is a free and independent democratic republic, governed by a constitution since November 7, 1949. Costa Rica is certainly one of the most stable and peaceful democracies in the world. The army was abolished in 1948 and permanent neutrality was declared in 1983. The previous President of the Republic Oscar Arias was designed the Nobel Peace Prize in 1987 for his action in favor of Peace in Central America.
The absence of an army has allowed the country to develop concrete social actions such as education and health. With a literacy rate of 95% and a life expectancy of 78 years, the country finds a very good place in the world rankings. Costa Rica is frequently referred as the “Switzerland of Latin America”.
Profitability
Profitability at 15 years of more than 200%
No inheritance tax, name in the will the heir without obligation
Purchase in the form of a company under Costa Rican law (Costa Rican law being modeled on the Napoleonic Code)
The only tax due is the annual flat-rate tax (IFA) included in the amount of the annual expenses announced. No taxes on the sale of timber, nor inheritance tax.
25 acres bought with around 7000 planted trees, 300 000€, 72 000€ of total charges integrating wages, social charges, IFA, fees of lawyer, fees of forestry expert and local taxes.
A market opportunity
300 000 € invests in year 0 for 25 acres
A plantation of 7000 trees
Fees of €72,000 for the first 12 years
A first cut of non-compliant wood allows to pay the costs of the following 5 years
A cut at 15/18 years old that brings in more than $400 per tree (at today's price)
The wood is sold either on stand, the buyer takes care of the cutting and extraction, or in m3 log. The price chosen for this study is a minimum calculated in trees sold standing.
it’s possible to make plots of 12.5 acres and therefore to take all the figures for half.
Our support
The first 12 months of planting, we guarantee the number of trees planted, whatever the problems that may occur during this time, we replant at our expense.
For the first 12 years and in agreement with you, we offer a follow-up of your plantation by going on site at least twice a year (in addition to the follow-up of a forestry expert.
Evolution
| Purchase of the planted land in €: | Incorporation fees | 1st year of maintenance | Taxation |
| 300 000€ | 1500€ | Offered | 150€ |
Incorporation fees: 1500€
1st year of maintenance: offered
Taxation: 150€
| Maintenance costs | N1 | N2 to N4 | N5 to N12 | N12 to the last tree sale |
| en € | Offert | 10 000€ /an | 4 000€ /an | 0€ / an * |
Frais d’entretien : 10 000€ / an (au plus)
De N2 à N12 : 72 000€
En N12 vente de quelques arbres : 1400 arbres * 200 € = 280 000€
| Purchase | Fees over 15 years | Turnover | Final result |
| – 300 000€ | – 72 000€ | 2 400 000 € | 2M€ |
Achat : – 300 000€
Frais sur 15 ans : -72 000€
1ère année d’entretien : 0 €
Résultat final : 2M€
Chronology
2023
Purchase of planted land
2027
Cultivation
2032
Intermediate Cut
2037
Cut
mi-2037
2nd planting or regrowth
2043
Cultivation
LANDS
Plots n°3 and n°4 tally with the business plan on display: on sale at €300,000 with 7,000 trees. 7000 trees will be planted on plot n°3 as well as on plot n°4.
Our team
We have invested in a personal capacity for several years, which allowing us to speak from experience
The risk on currency is low, the Colon being indexed to the dollar, all large transactions are made in dollars
There are no risk of scam on the laws or the language. COSTA RICA is a Spanish-speaking country, the laws are copied from the Napoleonic CODE (the origin of ours in France!). All transactions are done at a Belgian-Costa Rican notary-lawyer. The plots are cadastral, you are the owners of your land (unlike Asian countries).
Pierre-Louis de ZORDI
Investor
I already invested on 17ha 7000 trees planted and I propose to support you in your approach
Viviane BOYER de ZORDI
Wealth Manager
Michèle BOYER de ZORDI
