News
that a forestry investment firm is making interim payouts to
investors, as a result of a thinning process, will attract others to
forestry investment, according to FRA.
Seattle,
United States, October 26, 2012 -- News that a forestry
investment firm is making interim payouts to investors, as a result
of a thinning process, will attract others to forestry investment,
according to Forestry Research Associates (FRA).
Forestry
investment firm Greenwood
Management has announced it is hoping to make its
first payout to investors who have been with the company since 'Phase
1' of their Acacia project, in Spring 2013. The payout will take
place after Greenwood has undertaken a thinning exercise, which
removes some of the trees in a plantation to allow others to flourish
and grow as strong and large as possible, thus maximizing the quality
of the final harvest.
The
trees that are removed through the thinning process are sold for use
in the production of charcoal or for use in fence construction, for
example. FRA's analysis partner, Peter Collins, stated, "This
type of forestry investment model ensures that anyone investing in
timberland doesn't have to wait until final harvest to see returns on
their investment - they see returns throughout the process, which is
a very attractive prospect for those looking for a more medium-term
asset class."
Greenwood
Management's Acacia plantation is one of its most established and the
initial Phase 1 investments were made back in 2008. Greenwood claims
that the project is "well on target" with its, "operating
model and is progressing extremely well in Bahia state, Brazil."
The
final harvest of the trees in which people have invested should be
sold for a much higher value, as they will be larger and of the best
quality, explained Greenwood Management. However, it added that it
will try to optimize the returns from the thinning process for
investors, which means ensuring that the timber is sold when market
conditions are at their best.
About
Forestry Research Associates
Forestry
Research Associates is a research and advisory consultancy that
focuses on forestry management, sustainability issues and forestry
investment around the globe.
Media
Contact:
Peter
Collins
Forestry
Research Associates
620
Vineyard Lane
Bainbridge
Island, WA 98110
(206)
316 8394