FAQs about your Robinia or Paulownia Investment

About Robinia Invest:

1. Who is Robinia Invest?
Robinia Invest GmbH is a European forestry organization that operates on an international level. We promote socially responsible Forestry Investments. The German equivalent of Companies House is Handelsregister in Germany. Handel = Trade in German. Our registration number is HRB 23923 P.

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 12 or 20 year Investment is made up of two investments into one: timber & biomass (renewable energy). By combining these two 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. With the fast growing Paulownia trees, harvests for timber can be made after only 12 years.  With Robinia, we rely on the more profitable 20 year cultivation model. In this model, your trees are thinned out at regular intervals after 10, 15 and 20 years.

3. What happens after 12 or 20 years?
With the Paulownia investment, your management company should harvest the trees and then sell them on your behalf. With the Robinia Investment, your management company should harvest after 10, 15 and 20 years, after which the land goes back to Robinia Invest.  

4. What happens if I need to sell within 12 or 20 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.

  1. You are free to sell your trees 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.
  2. Upon your instruction, we will be more than happy to offer your trees to our other clients.
  3. We may well be interested in buying your trees back from you ourselves. This becomes more interesting as the harvesting time approached.
  4. The price of your trees can be negotiated between all parties involved at the time you wish to sell.

5. I would like to visit the plantations. It that possible?
Yes! You are welcome to visit the plantations 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 timber. 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! A hectare with  Robinia timber 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 Robinia or Paulownia timber, 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. In any event, you can take out a fire and storm damages insurance through an insurance broker. 

2. What happens in the event of disease or plagues?
Your  timber is 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  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 the plantations. 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.

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 of all the 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. As an individual (non-SIPP) investor, you can reclaim your VAT back.