Saturday, May 26, 2012

FRA says you don’t have to wait for Returns from Forestry

There are new models of timber investment on offer these days, with firms like Greenwood Management leading the way.

Bainbridge Island, WA, May 26, 2012 - Those interested in forestry investment may be put off of the asset class due to misconceptions that one has to wait over a decade to see returns. Forestry Research Associated (FRA), a research and analysis consultancy, claim that this is not the case with a new model of timberland investment offered by firms like Greenwood Management.

Those hoping to invest in sustainable forestry projects can now hand over as little as EUR10,000 and buy themselves a direct investment in sustainable plantations in Brazil, Canada and elsewhere. The model involves investing in existing plantation projects, while the forestry management firm use your cash to expand and develop their plantations, explained FRA’s analysis partner, Peter Collins.

He added, “It’s quite simple, the investor’s cash buys him or her a section of plantation – so they have a tangible asset in exchange for their money. However, this model differs as the investors start to see returns as soon as any mature trees are harvested a sold.”

FRA said that direct investment in forestry can sometimes put people off as they feel they will have to wait until the trees they own have reached maturity, which can take 10 to 15 years. However, those investing in existing plantations through firms like Greenwood can start to see returns much sooner.

Despite the differences in return schedules, those investing in forestry through this model can enjoy the same benefits that those buying up forestry land directly can enjoy. Mr Collins claims that investors can be safe in the knowledge that they are diversifying their portfolio with a forestry investment and that timber prices are not correlated with general economic indicators.

“Timber as an investment tends to hold up even when stock markets are plummeting,” added Collins.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394

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