Forestry Investment Services

Invest in Forests

“Money does grow on trees”

The forests in the tropics have been declining at an exponential rate for several decades due to rampant logging and conversion to agriculture and other land uses. Currently a significant proportion of the world trade of timber originates from areas where the trees are felled illegally. Most of the forests in developing countries have been logged without regard for sustainability of the timber resource and associated values the forest provides to society. As such, large areas of tropical forests are often severely degraded due to uncontrolled logging activities.

Global Forestry Services has established Forestry Investment Services to provide a framework for development of forest investment projects based on forest restoration and/or plantation development. All investment projects are designed to make a target annual return on investment of 8% or more based on net profit (before taxes) and meet international certification requirements such as the Forest Stewardship Council (FSC).

Investment projects centers on planting fast growing local tree species to produce timber suitable for plywood & utility timber can yield significant returns in 10-15 years or timber for chip wood products in 5-7 years.

GFS provides a simplistic structure for forestry investments whereby the investor owns the rights to the planted trees based on level of investment.  Initial investment fees cover ALL project costs through final harvesting. Investment costs include management fees, depreciation, capital costs, planting costs and land preparation.  Harvesting costs, royalties and premiums are deducted from timber sales so the investment revenue is net of project costs.

GFS has vast experience in tropical forestry to provide the project design, planning as well as monitor project development and implementation. GFS will strive to integrate forestry carbon projects within investment projects if appropriate and economically viable.  All projects are designed to meet FSC certification requirements to ensure credibility in the management system.