Robinia Invest GmbH is a European forestry organization that operates on an international level. We promote socially responsible Forestry Investments. Should you wish to run a check on us: the German equivalent of Companies House is Handelsregister in Germany. Handel = Trade in German. Our registration number is HRB 8753. All kinds of information about the company can be retrieved here, but it does cost money.
2. Why choose Germany?
The climatic circumstances in Germany are ideal for the healthy and rapid growth of your Robinia and Paulownia trees. This has a positive influence on the returns of your Investment. Germany has an excellent infrastructure and is easily accessible from surrounding countries. Additionally, the cost of land and labour in the eastern part of Germany are highly competitive. For all these reasons, Germany offers many opportunities to achieve optimal returns from your forestry investment.
About the investments:
1. How does your Robinia and Paulownia Investment work?
Your unique 10 or 12 year Investment is made up of three investments into one: timber, land & biomass (renewable energy). By combining these three investment elements, not only is your return potential greatly increased, but you also participate in a socially responsible investment which will be the wave of the future.
2. Isn't my term rather short for a forestry investment, how does this work?
The usual term for forestry investments is 20 to 25 years. These forestry investments are for trees which are cultivated to make into lumber. For Robinia, we rely on a different cultivation model. In this model, your trees are not cultivated to make lumber, but to make poles and biomass. This model also means that Robinia Invest plants five times as many cuttings as are planted in other forestry investment projects, offering a return over 20 to 25 years. On your plot the trees will not be allowed to mature, but instead be felled after 10 years to be processed into poles and biomass (renewable energy). With the fast growing Paulownia trees, harvests for timber can be made after only 12 years.
Your trees can be harvested. Your quality timber is then sent to a sawmill for processing into poles and lumber. The remainder of your trees are then processed into wood chips (biomass).
- We will sell the timber on your behalf to various local towns and cities or timber companies, which can also be outside of Germany. The proceeds will then be transferred to your bank account.
- Your biomass (renewable energy) can be sold to electricity companies in Germany.
- You have the option to sell your plot, or you can decide to make another rotation of 10-12 years.
- You can also decide to allow some of your trees grow bigger. The bigger the trees, the more money you will make from them. We will be able to advise you in this matter at the appropiate time.
4. What happens if I need to sell within 10 years?
You can encounter unforeseen circumstances from time to time. Should you be forced to sell prior to the end of your investment term, you have three options available to you. Although, to maximize your returns we recommend that this is not done unless absolutely necessary.
- You are free to sell your plot onto a third party of your choice ie - a friend, a relative, a work colleague or so on. We will be happy to help you with this, should you wish it.
- Upon your instruction, we will be more than happy to offer your plot to our other clients.
- We may well be interested in buying your plot back from you ourselves.
- The price of your plot can be negotiated between all parties involved at the time you wish to sell.
5. I would like to visit my plot. It that possible?
Yes! You are welcome to visit your plot at anytime. We would be more then pleased to help you with tips and directions for your journey. Visit our plantation visitor page.
6. I really don't know anything about Robinia or Paulownia?
You do not need to know a lot about Robinia or Paulownia to make this a profitable Investment for you. We have all the necessary knowledge and experience to ensure a good development of your plot and trees. For more information about Robinia and Paulownia, please visit our Why invest in forestry page.
7. Does my Robinia or Paulownia bind a lot of CO2?
Yes it does! Your hectare of Robinia binds (on average) 15 tons of CO2 per year. A hectare with Paulownia bind about 100 tons of CO2 per year. Another benefit of your investment. Your household emits about 9 tons of CO2 per year. So if you buy your own hectare of Robinia or Paulownia, you more than compensate for your own CO2 emmissions.
About the possible risks:
1. What if fire breaks out on your plot?
The chance of a fire breaking out on your plot is minimal. The ground cover between the rows of trees will be regularly mown and removed as part of the management agreement. Most importantly, your plot will be insured against damage from fire and storm through an insurance broker with AXA Versicherung AG (Germany) a specialist in forestry insurances. You are also free to choose your own insurance company.
Your trees are rarely subject to disease or plagues. Both Robinia and Paulownia are very resistant against disease because the trees have very little sapwood. It is in soft sapwood where insects can cause damage. With Robinia and Paulownia they are not able to do this, as the trees consists of 90% hardwood.
As your Robinia and Paulownia are originally from the United States and China, there are also no natural enemies that can harm them here in Europe. Furthermore, we will constantly monitor your plot. Disease or plagues have never hindered the growth of the Robinia or Paulownia trees or endanger revenue from the plantations. This is also due to the unique cultivation model.
3. Does my Robinia or Paulownia Investment involve a currency risk?
The European timber trade is carried out in Euros. This is a very strong currency when compared to others worldwide. In general, if the timber is sold in Europe, then there is no major currency risk.
4. Does subleasing a plot involve more risk?
In our case not, as we pay the lease upfront for 12 years. Our clients pay the sublease upfront for 10 years. The trees are registered to our clients. In a worst case scenario, the land might change ownership, but since the lease and sublease are paid in full for the whole 10 year term, our clients can still harvest their trees and the proceeds still go to them. The new owner of the land cannot interfere with this according to German law.
5. What if somebody has an accident on my plot? Am I liable for damages?
No. Robinia Invest has a liability insurance with AXA Versicherung AG for all the plantations in case of any accidents that could occur, either during the maintenance or performance of other duties.
About the tax implications:
1. How do the tax authorities treat my Investment?
For information on your Robinia or Paulownia Investment and how it will effect your tax situation, please consult your own tax advisor. For a complete overview about all possible taxes in the UK, please go to our special forestry and taxes page.
2. Do I need to register to receive VAT benefits?
No, you don't need to register for that. Robinia Invest will harvest, process and sell the timber on your behalf. The salesprice for the timber will include VAT of 19%. Any VAT retrieval by us will be transferred on to you, unless the harvesting, processing and sales costs are much higher than expected.
