5 Year Leaseback

 

Cooltribe Member

 

Your return after 5 years:

Plot Size

Number of  Trees

Total Investment

Return After 5 Years

Return Per Year Compounded

1/4 Hectare 1,500 € 6,000 € 8,265 7%
1/2 Hectare 3,000 € 11,250 € 16,530 8%
1/0 Hectare 6,000 € 22,500 € 33,060 8%

How it works:

  1. You buy the trees and lease the plot for 5 years. For 1 hectare that costs € 19,000.
  2. Robinia Invest will act as your management company to manage and maintain your trees. If you wish, you can choose another management company to do this for you. For 1 hectare that costs     € 3,500.
  3. After 5 years, Robinia Invest buys the trees back from you for a fixed amount, as stated in the table above. Your return is then 8% per year, compounded.

The benefits of the 5 year leaseback for one hectare:

  • Your entry level is lower, only € 22,500 instead of the € 28,000 for a 10 year term
  • You have a fixed exit strategy after 5 years
  • You have a fixed return after 5 years
  • You suffer no loss should prices fall
  • Forestry insurance included

Disadvantages of the 5 year leaseback:

  • You don't own the land
  • Your return is fixed at 8% per year compounded, you will not benefit from high price increases

Condition:

  1. Robinia Invest will only buy back your trees if they have been properly managed and maintained by us or a management company of your choice. As stated above, Robinia Invest will act as your management company, unless you choose another company to do this for you.