Tropical Teak Investments
The teak tree (or Tectona) is one of the fastest growing hardwood trees in the world. Teak trees can grow as high as 40 meters, and can live up to 100 years. Teak is an extremely resilient hardwood, and its’ natural oils make it highly resistant to the elements as well as pests and termites. Teak is widely used to make furniture, doors and windows, as well as columns and doors in the housing industry. The interest in teak by these industries is already wide and growing, making teak one of the most valuable hardwoods in the world. Like all of our Timber investments, teak is also an excellent inflation hedge in an uncertain world as well as a great example of green investing.
Teak is also a very green investment as the lumber from our teak plantation replaces teak from old growth tropical rain forests that would otherwise be harvested. Its location in Asia is also a great way to diversify into global investments.
GreenWorld’s Teak Investments offers potentially highly attractive returns, with a maximum Internal Rate of Return of approximately 19 – 20%% from teak saplings over a 20 year investment term. For an initial investment in teak saplings of £15,000/US$24,000, you can approximately make up to £236,000/US$375,000 over the course of the investment. For investors who prefer to see faster returns, there is also an 11 year investment in mature teak trees as well. Given the increasing awareness of teak by consumers, its growth in value in the future looks assured.
The way GreenWorld’s Teak Investment works is as follows:
- The harvesting of your teak investment is spread out over several levels of the teak’s maturity, allowing you to diversify and maximize your potential return.
- All of the maintenance, insurance, harvesting and sale into the marketplace is handled by our plantation partners in Thailand and Sri Lanka.
- You have complete control over your teak trees and can choose to sell your teak investment into the market at any time you choose, and/or even receive a guarantee from the plantation to buy your trees back after an independent market evaluation of their value has been completed.
- There are two teak investment terms available. There is a 20 year term which starts with the initial planting of the baby trees, as well as a 7 year term which involves purchasing mature teak trees at year 7.
- For the 20 year term, the initial outlay is £15,000/US$24,000. For the 20 year term, there are three harvest: Years 9-10; Years 15-16; Year 20. The total value of the 20 years investment at the conclusion of the term is estimated at approximately £236,000/US$375,000. This comes out to an Internal Rate of Return of approximately 19 – 20% per annum.
- For those investors who prefer a shorter term, there is an 11 tear option available. In this case, the customer invests into existing mature teak trees that are already 7 years old. You as the investor purchase 50 trees of teak for £19,500/US$31,000. The total investment return after the harvest fee is approximately £45,000/US$72,000 This comes out to an internal rate of return of roughly 11-12% per annum.