Frequently asked questions
1. How does my forestry investment work?
Your freehold forestry plot consists of three assets in one: timber, biomass and land. As the trees mature, their timber volume increases and becomes more valuable. After a rotation of 10 years, the Acacia trees are harvested, the timber processed and sold.
2. Isn’t my term rather short for a forestry asset? How does this work?
The usual rotation for forestry investments is up to 30 years. Our Acacia investments have a recommended investment term of 10 years. This shorter term is the result of intensive tree management that allows the trees to grow faster and thus be harvester sooner.
3. What happens when the trees need to be harvested?
Your chosen management company can harvest the trees and then sell them on your behalf, whenever you wish. They will advise you when best to harvest your trees. As you have the freehold title you can then sell your land or make another (much cheaper) rotation.
4. What happens if I need to sell within 10 years?
Should you need to sell prior to the end of your recommended rotation, you have three options available to you (although, to maximise your returns we recommend that this is not done unless absolutely necessary).
- You are free to sell your trees to a third party of your choice. We will be happy to help you with this, should you wish.
- Upon your instruction, we will be more than happy to offer your trees to our other clients.
- We may be interested in buying your trees back from you.
The price of your trees can be negotiated between all parties involved at the time you wish to sell.
5. Can I visit the plantations?
Yes! You are welcome to visit the plantations at anytime. We would be more than pleased to help you with tips and directions for your journey.
6. I really don’t know anything about Acacia?
You do not need to know a lot about Acacia to make this a profitable investment for you. Your management company of choice will have all the necessary knowledge and experience to ensure a good development of your timber. You can also find plenty of information about Acacia/Robinia/Black Locust on the internet.
7. Does my Acacia bind a lot of CO2?
Yes it does! A hectare with Acacia timber binds (on average) 17 tons of CO2 per year. A typical household emits 9 tons of CO2 per year. So if you buy Acacia trees, you more than compensate for your own CO2 emissions.