Profitable Solution to Global Warming: Tropical Timber Holdings
Hardwood Species such as Teak and Mahogany used in tropical tree farms have faster growth cycles and higher market values than North American timber holdings. Investment in these species offer IRR's of 10-20% and capture carbon.
Online, December 12, 2009 (Newswire.com) - Maderas Sostenibles SA (MSSA) is a Nicaraguan company committed to promoting sustainable investments through the reforestation of deforested land with tropical hardwood species. Tree farms are excellent long-term investments, capture carbon, replenish degraded soils and create jobs in the poor communities where they are located. Every time a cow pasture is converted to a plantation or forest new jobs are created,carbon is sequestered,water quality is improved, soils are replenished, erosion is reduced and native species are protected. This is an opportunity for investors to profit from the most green of all green ventures, planting trees.
Wood has been a vital component of every known culture. Today, lumber is the third most important commodity in the world after oil and natural gas. Over the past 40 years timber holdings in general have out performed most alternative investments. Precious hardwoods such as teak, mahogany, tropical oak, pochote, and Spanish cedar have shorter growth cycles and higher market prices than northern timbers, thus a higher rate of return overall. Few investments combine great economic potential with the positive environmental and social impact that tree farms offer.
Maderas Sostenibles offers a variety of ways to invest in reforestation. Timber investments are completely scaleable. One can purchase an existing small farm by the hectare or plant large scale plantation on a contractual basis. Maderas Sostenibles SA offers management services for its clients. The company's goal is to plant as many trees as possible whether it be for our private holdings or investors. Maderas Sostenibles' current milling and export operations will ensure the maximum return for your investment when it reaches maturity. MSSA specializes in Teak (Tectonis grandis) Mahogany (Swietenia macrophylla), Spanish Cedar (Cederela odorata) and Pochote (Bombacopsis quinata)
Secure Investment in Real Assets
Timber is one of the safest and steadiest growth investments available, protecting an investor from inflation, and providing returns above most alternative investments for the past 40 years. Precious hardwoods such as teak, mahogany, tropical oak, pochote, and Spanish cedar have shorter growth cycles and higher market prices than northern timbers, thus a higher rate of return overall. Most of our timber investments provide fee simple title to the land; an attractive investment apart from the timber. Investment in a well-managed tropical hardwood plantation provides both long-term return and short-term profit opportunities
Long Term Strategy
Timber is particularly suitable for SEP, retirement funds, or other long-term positions. The initial investment is relatively large, but the subsequent investment is minimal. The tropical hardwood growth cycle is typically 20-25 years, consistent with most retirement, pension, or long-term investment objectives. Once the plantation reaches the thinning stages in years 8-16 it will become self-sustaining and begin to provide revenue. Timber also provides diversification to any portfolio, a feature particularly attractive after the recent collapse of the typical equity investment portfolio.
Short Term Opportunities for Profit
Timber is typically considered as a long-term investment because of the hardwood growth cycle. Actually, plantation timber investments today also present short-term profit opportunities. Once established and certified, a hardwood plantation becomes an asset that can be sold in the open market before the growth cycle completes. A short-term business model that markets the plantation at 5 years or 10 years is as viable as a long-term model that manages and holds the timber to maturity. The market for short-term sale should steadily improve with the development of carbon credit funds and the continued growth of timber investment funds.
Why Maderas Sostenibles and Nicaragua?
Maderas Sostenibles offers a variety of ways to invest in reforestation. Investors can own one hectare (2.5 acres) of teak or 100 hectares of various species on land selected by them.
-MSSA's planting and maintenance contracts provide all necessary services from land acquisition to harvest.
-MSSA's milling and export operation will ensure the maximum return for your investment when it reaches maturity.
-MSSA operate in an area that we know and where our people have decades of personal and professional contacts.
-SW Nicaragua provides rich volcanic soil and a climate perfect for the hardwoods we are planting.
-The land costs are significantly less than similar land in Costa Rica or Panama.
-The government of Nicaragua is committed to reverse the centuries of deforestation and restore the Nicaraguan forest. The policies and laws favor the forestry business and investment in reforestation. The new forestry Law 462 has many incentives and tax benefits for people and companies who invest in reforestation.