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 |
|
|
|
| 1/2 Hectare |
3,000 |
|
|
|
| 1/0 Hectare |
6,000 |
|
|
|
How it works:
- You buy the trees and lease the plot for 5 years. For 1 hectare that costs € 19,000.
- 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.
- 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:
- 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.