Sustainable Investments
Timber Investment | Legal Structure Providing Security for Investors
How do we ensure our timber investments are safe for investors?
Our timber plantation partner has set-up a UK Trust Company with independent trustees. This provides the investor with a hands-free mechanism that actively inspects the financial and operational capabilities on an continual basis ensuring that the plantation company is in a position to meet its obligations (purchase orders from investors).
This provides a secure level of protection that we have not seen present in other timber plantation investments.
What protection does the UK Trust Company provide the investor?
This is a trust company with real teeth, the key part of the protection is that the trust has first charge over all the assets of the timber plantation company, both present and future. This charge can be verified independently with UK Companies House.
Other examples of what the trust company continually ensures:
- The company and its subsidiaries hold sufficient products to fulfill their obligations to investors who have purchased trees.
- The company and its subsidiaries are undertaking a forestry management program to ensure that the company is in a position to satisfy its obligations.
- The company and/or its subsidiary are the legal and beneficial owners of the land and of the trees planted thereon.
- The company and its subsidiaries are solvent.
Does the plantation company have any debt?
The timber plantation company owns all of the land and all other assets required for successful teak growing, outright. It has zero loans or debt.
If the plantation company wish to take a loan in the future it must be approved by the trustees. However, the plantation company do not need to take any loans out and it is unlikely to be approved by the trustees.
How does an investor become a beneficiary of the Trust?
As each new investor places a purchase order for the teak trees, they are registered into the trust thereby becoming a beneficiary and falling within its protection.
Who are the trustees?
The trustees are independent from the timber plantation company and they are legally obliged to operate the trust in the best interests of the beneficiaries (investors). One of the trustees is a specialist lawyer based in London.
Fees or extra paperwork for the investor?
There are no extra fees or paperwork for the investor during the purchase, growth phase or on sale of the trees (exiting the investment). It is fully administered by the independent trustees.
Summary:
A debt free, financially secure timber plantation company that has put additional security in place giving the UK trust first charge over all assets, present and future.
Download the 12 Page Timber Investment Report Below:
