Sustainable Woodland investment

Sustainable Woodland investment

An Irish Registered LP investing in high Quality Teak

An Irish Registered LP investing in high Quality Teak

3 years old and thriving

3 years old and thriving

Panama Teak Investment

This Irish Registered Limited Partnership (LP) provides a secure investment into Sustainable Teak plantations in Panama. As a significant Carbon store, our investment targets returns of 5% per annum, compounded over the 5 year term.

Green Belt Panama has acquired 256 hectares of land and established high yielding Teak clones. Working with our in country managers, we are delivering a sustainable investment platform in fast growing teak. Teak is used locally and in export markets, such as the US and India, for furniture, decking and boating with its long life and beautiful graining being highly sought after.

Green Belt has been active in Panama since 2004 and successfully closed a fund in 2013 with a sale to a US TIMO (Timberland Investment Management Organisation).

Our current and active investment, set up in 2017 and registered in Ireland as an AIF, set out to acquire suitable lands for establishing teak. Since then, we have created clusters of land banks and established a productive portfolio of 212 hectares of Teak on a gross area of 256 hectares. the remaining lands have been preserved for biodiversity including water course protection. These lands were purchased across 2018, 2019 and 2020 with high yielding clones established in each area.

It takes 7 years to fully establish a Teak plantation - to have it ahead of any competing vegetation. At this point, the portfolio can then be prepared and presented as an attractive package for a larger fund to acquire. Adding further to the portfolios value and attractiveness, the teak plantations are to be certified under FSC (Forest Stewardship Council) in summer 2022, providing further evidence of our sustainable management standards. An added level of excitement comes with the plantations being added to a Voluntary Carbon Register under the Gold Standard. Carbon sequestration in Teak is of the order of 17 tCO2 per hectare, each year. Registering the plantations now will ensure their acceptance to trade carbon in the future.

Investment returns are conservatively forecast at 5% per annum, compoundedover the funds 5 year term (2022 to 2027). Returns are paid out via dividend to the limited partnership. Forestry in Panama qualifies for income tax exemptions.

We are raising €1.5 million to close out this fund and to have the plantations fully through establishment phase.

Our previously recorded webinar can be viewed here.

Investment in Panama is structured within a Limited Partnership, registered with the Central Bank of Ireland. A fully owned subsidiary named Panama Teak 2 was established and registered with the relevant authorities in Panama, including the property registrar.

Why Teak Plantations in Panama? Panama is an attractive country in which to establish teak plantations for many reasons: • Politically stable economy

• Attractive land prices

• Tropical climate, deep soils and heavy seasonal rainfall provide the optimal growth conditions for teak

• Highly developed transport infrastructure to export markets

• Strong tax incentives in place to encourage foreign investment into forestry projects

• No exchange controls (i.e. no government restrictions on moving money into, or out of, Panama)

• As well as Green Belt, teak plantations have already been established in Panama by investor groups from Japan, USA and Switzerland

At this midpoint in the investment cycle the minimum investment is €25,000. The term is 5 years and exit year is 2027.

Contact Maurice Ryan on 087 6753097 or maurice@greenbelt.ie to get the necessary information to become involved.

We are delighted to be hosting a webinar LIVE from Panama on April 1st, 2022 at 15:30 GMT. To be part of the webinar, please [register here]

We have some great videos and information on the Panama Teak investment. Here are a selection of the videos to view. For more information, please call Maurice Ryan on 087 675 3097

A 10 second video overview

A previous Webinar

Maurice Ryan of Green Belt

Get in touch with Maurice Ryan, Green Belt's Business Development Director on Tel: +353 (0)87 675 3097 or @ maurice@greenbelt.ie

Green Belt is your natural environment and forestry management expert. We provide professional services nationally through our network of foresters. Green Belt can manage your harvest, establishment, replanting and provide a structured plan for your lands and portfolio.