€500 million of assets under management globally

€500 million of assets under management globally

Provide for the next generation

Provide for the next generation

Invest in Forestry

Forestry is one of the most secure commodities in today's markets - tangible, safe and growing even in the worst financial climates. It's part of the perfect investment portfolio blend.

In managing €500 million worth of assets across Ireland and Panama, Green Belt can provide a full suite of services to private investors, family offices and institutional investors. Green Belt manages the entire life cycle of forestry and beyond, seeking to maximise the full potential from a forestry investment.

Frequently Asked Questions on Investment in Forestry

What is the typical term for forestry investment?

It can range from 10 years onwards. The options for investment can include semi mature forestry, within a vehicle such as Forestry Acquisition Consolidation & Timber (FACT), a stand alone forestry investment or a combination of the above.

What is the typical IRR from a forestry investment?

We realistically predict a 5% IRR for forestry investments. This is a tax free return, current rules applying.

What tax is paid on forestry investment?

PRSI and USC are paid on forestry harvesting returns. If you hold shares in a forestry investment, the transfer of shares is taxed, but the income derived from the occupation of commercial woodland is tax free. The forestry crop is not liable to CGT or to Stamp duty. Returns from the occupation of commercial forestry are tax free. Read more on the Taxation including Inheritance Tax in Relation to Forestry and Woodlands

Do I earn anything during the investment term?

Earnings from forestry thinning operations can be paid out as dividends. We can compile a structured forestry portfolio to provide regular dividends to investors.

What risks is my forestry investment open to?

There are risks from fire, wind and pestilence. These can be mitigated against but can still persist. Forest insurance is recommended and available through Green Belt Ltd. Economically, there are market risks but as timber is best stored on the stump, it can increase in value as the markets recover. With a strategic view of your forestry portfolio, Greenbelt can manage economic risk effectively.

Why is forestry the best investment?

  • Low risk to return ratio;
  • Biological growth is not impacted by economic factors, it is safe and reliable;
  • Generally a negative correlation to stock market indices;
  • Traditional risks can be avoided through professional forest management;
  • A forest is a tangible asset which is a source of value creation;
  • Irish timber has an incredible untapped value for the bioeconomy;
  • It is becoming more valuable as Carbon Capture becomes more important.

FACT 2 Forestry investment

Green Belt’s FACT 2 follows the success of last years investment. This initiative creates clusters of semi-mature forestry in nationally strategic locations to service end markets including sawmills and biomass facilities. FACT will enhance the value of smaller forestry plantations under one owner, while delivering tax free returns to investors. This short video explains the concept more clearly. As demand for timber increases globally, mobilising and valorising timber from Ireland's private estate becomes more and more important. Beyond the simple economical gains, there are significant environmental and social benefits to forestry in Ireland.

Panama Teak Investment

Green Belt’s investment objective is to acquire c.2,400 hectares of forestry land in Panama and to develop teak plantations over the next 5 years, targeting compounded returns of 7%-8% per annum. Green Belt is returning to Panama following a successful sale of its AUM in 2013. Based on Green Belt's previously successful experiences in Panama, it is anticipated that the project will exit between years 8 and 10 targeting a year 8 return of €1.75 million on an investment of €1.0 million (pre-tax). This is equivalent to a return (including initial capital) of €87,500 from the minimum investment amount of €50,000.

Maurice Ryan of Green Belt

Get in touch with Maurice Ryan, Green Belt's Investment Manager on Tel: +353 (0)87 675 3097

Green Belt have invested more than €28 million for farmers and investors into the above options since our incorporation in 1982. Our network of professional foresters located nationally are perfectly placed to source opportunities suitable for you and to manage your investment through to clearfell and beyond.