Sub-leasing the land

Buying land in Germany, dividing it into smaller plots and then entering those plots in the German Land Register is a costly operation and time consuming. A lot of these costs can be avoided when we simply lease the land from landowners and then sublease that land to our clients. As it is all about the trees anyway, this saves a lot of money. As the returns after harvests remain the same, the return per year goes up.

Of course we do have to take into account the matter of safety for our clients. that's why we have come up with the following solution. We pay the lease in advance for 12 years and our clients pay their sublease in advance for 10 years. This ensures the safety of our clients investments in case of insolvancy of our company.

The main benefit is obvious. To purchase a hectare of land with trees now costs € 28,000. The same hectare subleased can be offered for as little as € 21,000. A difference of 25%!

We will therefore start to offer the subleased plots in the very near future, it just makes a lot of sence from a financial point of view. We still offer the purchased hectares, but only from 2 hectares or more.

Coming to you in May!

Wouter Bakker