Andrew Skeene, Joint founder of Global Forestry Investments A few years ago, my business partner Omari Bowers and I were working in the property industry. When the market started to crumble we decided it was time to 'burn our boats' and look for new opportunities.
We had experience of buying land without planning permission in the UK and abroad, and had a particular interest in the emerging markets of Brazil, Russia, India and China.An opportunity came along to purchase a plot of land in South America and we decided to go for it.
When we purchased the land, it just so happened that there was a timber farm based on the plot. We found this interesting and started to do some research into timber as a commodity.
What we discovered changed our lives and Global Forestry Investments was born.
Andrew and Omari said they never expected to see their careers move into forestry
We found hedge funds in the UK and the US were buying up lots of agricultural land in South America and Africa.
The hedge funds were offering other hedge funds and big spending investors the opportunity to purchase plots of land.
With such a wave of activity, we sensed something exciting was about to happen that we wanted to be a part of.
We realised that there was a gap in the market for the small retail individual who wanted to get involved in an alternative, sustainable, reliable investment.
We also discovered forestry investments had grown 20% per annum in the past few decades and had actually overtaken the growing rate of the property market in 2007.
Historically, real estate, gold stocks and mutual funds have shown considerable volatility. Comparatively, teakwood has demonstrated much less fluctuation with consistent and sustained value over long periods of time.
The pair realised they must build links with local communities to gro their business
We purchased a small plot of land ourselves in Mato Grosso in Brazil; sold it and made a small profit. We then used the money to purchase a second plot of land in Para, in the northern territory of Brazil.
The land already had eight-year-old teak trees which meant the waiting time for trees to be sold to market was dramatically reduced. Typically teak takes 20 to 25 years to fully mature, so it's a long term investment.
However, with the land we own, investors can expect to receive returns within the next 12 months due to the maturity of our trees.
We will start the 'thinning' process in 2011, which basically means that off-cuts from the trees can be sold to make products such as plywood.
The process continues every three years throughout the life cycle of the trees.
The biggest challenge for us was spending the time to get the right team together. We had done extensive research and due diligence but needed to find a solicitor and a forestry consultant who knew the regional well, had established relationships with the local communities, knew the local laws and could be trusted.
Once we found those people, the rest of the puzzle was easy to fit together.
For every tree that an investor buys, Global Forestry Investments will plant one more
The land we own is specifically used for forestry and will be continued to be used for forestry for many years to come.
We also want to give something back to the planet - that's why we have made a vow that for every tree an investor purchases, we will plant a second tree that will remain completely protected and go towards preserving the Brazilian rainforest in the heart of the Amazon.
An investor can purchase 100 trees for £5,000 and expect to make a return of 10% per annum on their original investment.
Global Forestry Investments will then plant a further batch of 100 trees in the Amazon, effectively helping to reforest areas that have been affected by rogue traders and unscrupulous slash and burn merchants.
Our aim is to plant one million trees within the next three to five years. We also have plans to build a school, football academy and performing arts centre for the people in the local communities.
We believe that we can help to save the Amazon by planting one tree at a time. When you invest in forestry you are investing in the lungs of the planet.
It's been an incredible journey and if you had told me five years ago I would be planting trees in Brazil I would never have believed you!
Brazil Beguiles Two Young Entrepreneurs- Andrew Skeene and Omari Bowers, founders of Global Forestry Investments, said they would not have believed you for a second if a few years ago you had told them they would swap jobs in the property market for managing a timber farm in Brazil.
Source: See Global Forestry Investments Website Here
Source: Read the Original Article From Sky News Here
Source: Watch the Video from Sky News Here
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