Robinia Invest has researched the possibilities of growing Paulownia in Germany for some time now and the time has come to offer an investment in Paulownia to our clients.
The Paulownia (or Kiri tree) is a remarkable tree, fast growing and a hardwood, it can be used for many different purposes. Ranging from use in furniture to surf boards, Paulownia timber is becoming quite a succes story worldwide.
Until recently, Paulownia could only thrive in warmer climates, but intensive research over the last few years has resulted in the development of a few clones that can also thrive in the European climate.
How it works:
- You lease or sublease a plot on one of our plantations for 12 years and become the owner of the trees planted there, as part of the purchase agreement.
- All lease agreements go through Hutchinson Trustees.
- You choose your own management company to manage your trees for you. We can offer you 3 different management companies to choose from.
- You can harvest your trees at any time before the 12 year lease term ends. Our projections are based on harvesting the trees at 12 years.
- You are free to have your trees certified and to take out forestry insurance.
- You have the option to sell us your timber when it's ready to be harvested.
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Your Paulownia Lease Investment for 12 Years for SIPPs:
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Investment¹
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Plot size²
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Trees
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Projected Return
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ROI/ Compounded
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| € 11,000 |
0.2 Ha |
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¹)The investment price includes the optional average management fee of € 1,500 per 0.2 Ha, 19% VAT and the fees for Hutchinson Trustees (TTI).
²) 0.2 Ha = 2.000m².
Your Paulownia Sublease Investment for 12 Years (NON-SIPP):
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Investment¹
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Plot size
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Trees
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Projected Return
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ROI/ Compounded
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| € 7,000 |
0.2 Ha
|
|
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¹)The investment price includes the optional average management fee of € 1,500 per 0.2 Ha and 19% VAT.
Your Paulownia Freehold Investment for 12 Years (NON-SIPP):
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Plot Size
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Investment
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Projected Return
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ROI
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Compounded
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1 Hectare
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€ 40,000 |
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- With this investment you are purchasing the freehold title to the land and trees.
- Freehold gives you the benefit of being able to make several extra rotations at very low costs.
- Investment price does not include 19% VAT but does include optional average management fee.
The German climate has one big advantage over the warmer climates in say Central America or Australia: it has real seasons!
The big benefit of having real seasons, with temperature changes, is that the produced timber is more colourful and therefore more appealing for the timber market. Naturally, Paulownia grown in Germany will not grow as fast as in warmer climates. This is benefitial for the quality of the timber though.
When Paulownia grows very fast, the quality of the timber is lower than when it grows slower. Slower growing Paulownia produces denser wood, which is stronger than that of faster growing Paulownia. In the timber trade this is measured as follows:
Grade C: 4 Growth rings per inch, with 2 defects
Grade A: 8 Growth rings per inch, with 0 defects
Class A is the most valuable wood. Naturally, fast growing Paulownia (as in the tropics) will only have a few growth rings per inch and the timber will be of less value than that of slower growing Paulownia (as in Germany).