Foreco Growth
Investments
green investments in
european forestry projects
With rapidly increasing demand for commercial
timber and other wood and paper products,
forestry investments are becoming an increasingly
obvious choice for investors seeking to gain posi-
tive medium to long-term returns. Here we
discover how Foreco Growth Investments, a lead-
ing provider in the Forestry Investment business,
offers products to meet this growing demand.
The Facts
Commercial woodlands are defined as property
where timber from the forest is actively being
marketed and sold. According to the research
house Investment Property Databank, forestry has
recently been the best performing asset class,
returning 26 per cent better returns compared to
17 per cent for shares. With a continually expand-
ing world population which increases pressures on
natural and sustainable resources, timber offers
excellent prospects for investment with a real
opportunity for profit.
Contact Foreco Growth Investments on
020 7148 7100.
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Foreco Growth Investments
Foreco Growth Investments Limited (Foreco) is a
unique investment-based company which offers
you the opportunity to take part in socially
responsible and highly lucrative investment
opportunities, bringing benefits to both you and
the world you live in. The way our forestry invest-
ment proposal works is really quite simple; a client
of Foreco is offered the opportunity to purchase a
plot on one of its plantations in Europe and
becomes the legal owner of that specific plot. As
part of the purchase price the plot will be planted
up by Foreco with Robinia trees. The client has full
control of the investment and manages and
maintains the plot and trees by appointing a
highly qualified forestry manager for this task. The
forestry management company will see to the full
management of the plot and provide regular
management reports and health-checks. You’ll
then have the opportunity to harvest the trees.
This is typically after 10 years. Once this is com-
plete, you sell the timber poles and also make
returns from the sale of wood chips, which is sold
as biomass. Finally, you can choose to restart the
process or profit further from the sale of your land.
How useful is Robinia Timber?
Robinia (Pseudoacacia) is a timber species that
compares well in quality with many tropical
hardwood species. Being one of the hardest
timbers around it has many applications in the
building trade, the furniture industry, and the
shipping industry and is virtually maintenance-
free. One of its biggest advantages however is
that the tree grows quickly, about 1 metre in
height and 1 centimetre in diameter per annum.
This means that any investment has the potential
of materialising after just 10 years, whereas an
average timber investment would normally see
returns after 20 to 25 years.
For the more technical investor, it’s worth adding
that after a limited test in 2000, Robinia was
classified under strength class K30 in compliance
with NEN 5498:1997. The visual sorting criteria for
Robinia concern the distribution of knots, which is
no higher than 0.3 and grain deviation of no more
than 1:10.
Determining Demand
Foreco have a clear outlook on the returns possi-
ble from timber and the figures really do speak for
them themselves. After oil, timber is the most
intensively traded raw material in the world. The
demand for timber rose by 60% between 1960
and 1990. The food and agriculture organisation
of the United Nations (FAO) expects this demand
to experience a further rise of 50% up to 2010, not
including the demand for firewood.
The present supply of hardwoods from managed
plantations cannot meet this need. Fifty countries
that have joined the International Tropical Timber
Organisation, including the EU, USA, and Japan,
decided in Geneva that, from 2000 onwards, only
hardwoods that are logged from sustainable
forests and plantations can be imported. A clear
sign of times to come.
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Helping save the Environment
Besides the opportunity of receiving healthy
returns of anything between 8-15% on your
investment, there are several other environmen-
tally sound reasons why potential investors
would look to invest in Forestry and Robinia.
Firstly, Robinia is a tree species that is known for
its phenomenal early growth, during which it
absorbs large amounts of CO2. One hectare of
Robinia binds on average around 15 tons of CO2
per year. Considering the standard household
emits about 9 tons of CO2, it clearly compen-
sates for one’s own CO2 emissions. Also, burning
wood to produce energy emits less carbon than
burning fossil fuels, especially if the trees are
replanted, because plants trap CO2 from the air
as they grow.
One of Foreco’s key objectives is to promote
social sustainability and environmentally respon-
sible conduct, and it’s clear from their product
offerings that the company is thriving to meet
their commitment to both investor and environ-
ment alike.
The Bottom Line
An investment with Foreco allows you to buy a
plot of land based at their European Plantation
Partner site in Germany with trees planted on it,
the timber from which can be cut after a certain
time and subsequently sold. There is no joint
participation with others and the money paid is
for the plot and the initial planting. Foreco
differentiates its services from a collective invest-
ment scheme by stating that it’s the client who
has day-to-day charge over the plot they buy,
giving them the control to really prosper from
the investment.
Next Steps
To find out more about our Robinia Planta-
tions please feel free to call a consultant on
020 7148 7100.