Tropical Agarwood Investments
Agarwood is truly a most unique wood and certainly quite different than other Forestry Investments. Agarwood comes from the Aquilaria evergreen tree, which grows deep in the tropical forests of Southeast Asia. Approximately 1% of these evergreen trees become infected a substance spreading from deep in the wood. As the Aquilaria tree begins to fight off the fungus, a dark brown or black resinous thick core is formed within the wood. It is this resin which is known as Agarwood.
Agarwood is extremely highly valued by luxury perfume, fragrance and soap manufacturers. Agarwood chips can be burned for their aroma to create an incense for spiritual or religious ceremonies in countries as diverse as Japan or those in the Middle East, and agarwood chips start at £20 per kilo up to £6,000 per kilo depending on how much resin is inside the chips.
Likewise, the oud oil distilled from agarwood can cost as much as £20,000 per kilogram depending on the purity of the oud oil. The leading luxury brands such as Yves St. Laurent, Dior, Juicy Couture and others all make heavy use of oud oil in their premium brands. No other timber investment that we know of is as unique as an Agarwood investment.
In addition to the fact that only 1% of Aquilaria trees contain the resinous agarwood substance, the Aquilaria since 1995 has been protected by the Convention of International Trade in Endangered Species of Wild Fauna and Flora due to massive and ongoing illegal logging. Luckily, the plantation involved in Thailand involved in the agarwood project has created a unique process by which the agarwood resin can be created inside every Aquilaria tree on their plantation. This means that agarwood Timber investments satisfy a global consumer need whilst not contributing in any fashion to the destruction of tropical forests – you can rest assured that this indeed fits within the green investments category .
Luxury brands concerned with their image are willing to pay a premium for Agarwoods’ oud oil sourced from sustainable Aquilaria plantation forests. The current global market for agarwood is estimated to be in the range of US$6 – 8 billion and is growing rapidly. For an outlay of £20,000/US$32,000, you receive back approximately £65,600/US$104,000 at the conclusion of your 7 year – an Internal Rate of Return of approximately 29%!
GreenWorld’s Agarwood investment is structured the same way as our teak investment. You maintain complete control over your investment, and our plantation partner handles all of the maintenance, insurance, harvesting and sale into the marketplace at the end of the term from their plantations in Thailand and Sri Lanka. If you are looking for highly profitable Timber investment, consider agarwood!