Traditionally, oil and gold has been used to expand investor portfolios and to of course, shield against inflation that can have a serious knock on effect on people’s wealth. Recently however, the popularity of agricultural commodities has risen due to growing populations and scarcity of land lifting up prices, creating a worthy case for investment.
The global market for timber is enormous, having doubled in the last six years alone, yet timber supplies are declining through increasing levels of deforestation and the reduction of illegal logging. There has never been a more pressing time to invest in a timber alternative, a natural renewable raw material.
In the sustainable investments sector, bamboo is fast becoming the best alternative addressing global, social and environmental concerns as well as bringing home high profits in a relatively short timescale for investors. With the bamboo market currently at $5bn a year, growing to a predicted $20bn by 2015, investing in bamboo presents a win win situation for everyone.
Dr Montagnini from Yale University School of Forestry further backs up bamboo as an attractive asset in which to invest, commenting,
“Bamboo plantation projects will be as profitable as those involving timber tree crops. In fact, there are clear indications that bamboo plantations can be more profitable”
But what you might ask are the benefits of using bamboo as an alternative sustainable commodity and why should we invest?
Quick Growth: As the fastest growing land plant in the world, a bamboo culm has an astonishing way of replacing itself within 50 days where as a hardwood tree can take years if not decades to grow.
Durability: Regarding Carbon Sequestration, compared to timber, bamboo absorbs around 4 times more CO2 and produces up to 35% more Oxygen. While up to 15 kilometres of usable pole from a single clump of bamboo can be produced over a 15 year period.
Strength: Bamboo is as versatile as any other building material and has greater mechanical qualities than almost any other timber. It has twice the compression strength of concrete and a greater tensile strength than steel.
Commercial Uses: Bamboo has over 3,500 uses including food, construction material, flooring, furniture, charcoal, paper, medicines and textiles to name a few. However, most importantly, the technology now exists such that bamboo can be used to do anything that traditional timbers can do at lower costs and with greater environmental benefits. The biggest growth markets are flooring, fibre panel board, paper and pulp.
Environmental benefits: The world’s forests are under huge pressure as demand for timber grows. Traditional hardwoods take 25 to 50 years to grow compared to just 50 days for bamboo. As a result bamboo produces more than 20 times the timber from the same area; thus creating a sustainable source of supply. At the same time, bamboo absorbs four times more carbon from the atmosphere and creates more oxygen than other timbers. It also has a myriad of local environmental benefits which are not found in other plantations.
Value to Investors: Bamboo is a high value product with booming demand. The returns from investment far exceed those of traditional assets in recent years and will help investors pull in attractive annual returns.
It is forecasted by Yale University that one hectare will produce over 109 km of bamboo pole in 15 years, consequently leaders in the alternative investment market, Property Frontiers believe that investing in bamboo makes perfect sense and will suit investors looking to have a positive social and environmental impact as well as benefit from a high return rate. As the most exciting of any timber investment, Property Frontiers are offering a secure and rewarding SIPP eligible bamboo investment in Central America with fixed annual returns starting in year 1.
David Cox, Director of Property Frontiers explains,
“When property values around the world crashed it made investors realize the benefits of having a diversified portfolio, forestry was there, with its solid returns offering something different.
“With global warming on the horizon becoming one of the most important issues our generation will be faced with, bamboo plantations are cashing in, as people shun traditionally felled wood products in favor of the environmentally friendly choice.”
He further continues,
“This project is set to be by far and away our biggest success yet in terms of take up from investors and long may it continue.”
But how does the investment work? With a minimum investment of $16,500 investors buy a 15 year Alternative Bond. This bond entitles them to fixed payments over the 15 year period that reach a maximum of 55% per year! At the end the principal investment is repaid meaning that the highest returning bond priced at $50,000 returns over 500% during the term. This return is fixed and secured against assets of the UK based issuing company to protect investors from default.
This green investment in Central America is a perfect investment opportunity with a variety of significant advantages, helping investors build their ‘green’ credentials and make substantial returns from a lucrative and growing market whilst helping to lessen environmental impacts and improve the social and economic wellbeing of a less developed nation.
For more information on this investment opportunity please contact Property Frontiers on +44 (0) 1865 202 700 or visit www.propertyfrontiers.com.
