Green Belt Panama Teak

Green Belt Panama Teak

Green Belt plantation in Panama

Green Belt plantation in Panama

Panama Teak Investment

Green Belt is closing out its investment in Panama Teak 2 Limited Partnership. With 212 hectares of productive Teak under management your investment will yield an estimated 5% per annum over the term, with an expected exit date of 2026. ****

Green Belt, under a limited partnership structure has acquired 212 hectares of land and established high yielding Teak clones. Working with our in country managers, we have built on our experiences and success from the previous investment term from 2008 to 2013. Investment returns are forecast at a conservative 5% per annum, compounded over the funds term. There are 2 exit opportunities to consider for your Teak investment.

After 8 years of growth, the plantations are attractive to fund investors and could be sold, we are predicting an exit similar to previous exit strategy, and the assets being acquired by a US TIMO (Timberland Investment Management Organisation). This will be 2026. We are raising €1.5 million to close this fund and have the plantations through establishment phase.

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. The LP has been advised that PT2, based on current legislation, will qualify for an income tax exemption status, as a registered forestry operator in Panama. At the end of the investment period, PT2 will return all profits by way of a distribution to the LP directly or through an Irish company (this Irish company will liquidate and the net profits from the investment distributed to the LP) and then to the partners.

The Product Teak is one of the world’s most sought after hardwoods, which historically has exhibited steady price appreciation and stable demand. The investment location, Panama, is a stable, US dollar based economy where teak plantations have already been successfully established by the Promoter and other international investor groups. The hot and periodically moist, tropical climate and deep fertile soils provide optimal growth conditions for teak, allowing a crop of teak to be produced in c.18 to 23 years. The Promoter and investment manager is Green Belt Limited based in Virginia, Co. Cavan. Green Belt Limited is Ireland’s largest private forestry company and provides forestry management services on over 125,000 ha (c. €500,000,000 in asset value) of forestry for private and institutional investors.

Previous Investments Between 2007 and 2009 Green Belt raised $4m, including a commitment of own funds, to acquire 638 hectares of agricultural land in the Darien province of Panama. In conjunction with our Panamanian partners, Panama Reforestation Company, this agricultural land was cultivated and planted with teak.

Successful Exit Following careful management over a number of years and once the plantations were successfully established, a number of US based Timber Investment Management Organisations (TIMO’s) expressed an interest in acquiring the investment, having seen value in a de-risked, established portfolio with clean title held within a neat corporate structure. In 2013, a satisfactory offer was received and the sale of the investment was agreed.

Investment Returns (historical) This sale equated to an annual return in the range of 8% to 11% (depending on the year of investment), after taxes. This return was delivered during a period when international financial markets were in turmoil, resulting in those investors who had diversified their portfolio to incorporate an investment in Panama Teak, being able to cash in their investment profitably at a time when the value of most other investments, particularly property based investments, struggled to return capital in full, let alone result in a profit.

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 in forestry projects • US dollar-based economy • Current stable inflation • 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 2026.

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

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.