Your Questions Answered
Who are Oxigen Investments?
Oxigen Investments is a UK based company specializing in investment in the ethical forestry sector. We are in our 5th year of trading and already have 24% of our clients reinvesting with us and enjoying the benefits of investing in ethical and sustainable forestry projects. We have appointed BDO Stoy Hayward as corporate advisers and auditors.
Who are Oxigen Plantations?
Oxigen Plantations is a specialist ethical forestry operator providing sustainable forestry projects in the Sri Lankan regions of Kandy and Puttalam, with plans for expansion throughout South East Asia, Africa, South America and Australia.
Oxigen Plantations is approved by the Board of Investment (BOI) the government body that facilitates and regulates all inward investments into Sri Lanka.
Our plantations in Kandy and Puttalam observe the highest standards of sustainable and fair trade policies. The two estates total 1100 acres. We are also working closely with government ministries to establish other suitable sites for reforestation and agricultural projects including re-establishing existing tea and rubber plantations.
Our areas of interest include:
- Sales of individual forestry opportunities
- Re-establishment of former Rubber and Tea plantations
- Creating economic benefits to local communities
- Working in partnership with the environment to improve it for future generations
UK activities?
We offer privately owned forestry opportunities through Oxigen Investments in Agarwood and Teak.
- Agarwood 6 years maturity
- Teak 18 years maturity
Why Sri Lanka?
It's the perfect location.
Nature has bestowed upon Sri Lanka some of the most favourable climatic and environmental conditions, making it ideal for growing the species of forestry referred to throughout this website.
The former Ceylon is one of the oldest colonial countries in South East Asia and operates a British style legal system.
The country is one of the region's fastest growing economies, with the most innovative and rapidly expanding stock exchange in the region.
Sri Lanka is also home to some of the foremost forestry experts in the world with numerous universities specialising in forestry management.
The democratically elected government is welcoming and encouraging to eco-based foreign investment.
It is also home to the most important rainforest in South East Asia, Sereniya National Park, which is of major benefit to the region's ecosystem.
The Sri Lankan government's forestry department maintains 45,336 hectares (113,340 acres) of teak plantations for investment. Teak has been grown and traded in Sri Lanka since 1680. Teak is traded on the global market each year with India being the largest consumer followed by China. Asia, China, India & Indonesia supply 90% of this market. Sri Lanka is perfectly located to supply these markets and has a free trade agreement with India.
How does it work?
First of all our clients need to decide on what they want to purchase after consultation with one of our consultants. The client then needs to decide how many trees they wish to purchase. Opportunities are available from £10,000.
Once the order has been completed, it is sent to Oxigen Plantations (Priv) Ltd, who will confirm the plot allocation and issue an "Ownership Certificate" detailing the client's ownership of the trees plus a separate lease, in the client's name, for the land they are growing on. Payment can be made here in the UK to Oxigen Investments or by arrangement direct to Oxigen Plantations (Priv) Ltd in Sri Lanka. We can accept payments in Sterling, Euros or US Dollars.
Our clients will be kept updated as to the progress of their trees via a quarterly Foresters' Report. We issue a full audit of all our plantations which will be independently audited by BDO Stoy Hayward, Colombo, on an annual basis. Any client can have an independent audit of their own plot at any time (at additional cost) via ourselves or any independent third party of their choice. We also encourage our clients to see our work and offer organised visits to provide the opportunity to inspect their trees, meet fellow owners and find out more about the people and culture in the local area.
When the trees are nearing maturity our clients will be advised of their approximate value and can decide when to harvest. There are a number of options from selling the harvested logs to having the wood processed and whatever their decision the client will receive the full value of their harvest less any pre-agreed harvesting or processing fees.
Who will manage my Forestry?
Control of your forestry remains with the client therefore you must appoint a Forest/Harvest Manager of your choice. Clients are free to appoint their own alternative management company at any time, and are not obliged contractually to use Oxigen. Should you choose Oxigen we will provide 6 monthly reports audited by the Forestry Department and annual timber stocks report audited by BDO.
Maintenance Cost
Annual maintenance cost for the management of your trees is outlined in your application/order form and confirmed via our compliance call. Any maintenance agreement shall be made directly between you and the Forestry/Harvest Management Company of your choice should you choose an alternate to Oxigen.
Harvest Cost
Clients are responsible for authorising and appointing a Forestry/Management Company to carry out any harvesting or other such works to their trees, after receiving forester's recommendations or on request of a foresters report. Clients are under no obligation as to when they can harvest their trees, the control and choice rests with the client throughout the contract. These costs are provided in our projection information.
What are the benefits?
This is a "Retail Opportunity" and as such our clients are not buying into a fund or any other form of collective investment scheme and are not promised any specific profit. However, since they own their trees the profit is based on the full value of those trees at maturity or during their growth.
Prior to making any decision all clients should seek independent financial advice. Oxigen Investments is not regulated by the FSA or authorised to provide any financial advice. Please refer to our Disclaimer page for further information.
What if I need my money back before my trees are harvested?
We understand that life can present unforeseen events and circumstances which require additional finance. Oxigen Investments have several contingencies to assist you should you find yourself in this position, or merely want to exit your ownership prior to harvest.
As you are the leaseholder of your land and the certified owner of your trees you are perfectly entitled to sell to whomever you wish - this could be friends, family or any other third party. The lease, title to trees and any management contract are all transferable.
Oxigen Investments will be happy to offer your forestry portfolio to any number of our existing clients as well as new prospective purchasers who are considering the opportunity. As your portfolio will be nearer to maturity it will be attractive to other interested parties.
So with all these options there is really no cause for concern if something unexpected should arise.
Are there any risks?
As with any living organism there are risks to consider. Fortunately these are few and far between and we do take steps to mitigate their effects:
- Forest fire: these are very rare in the humid tropics. Even so, we have special precautions in place to prevent serious damage to our plantations if ever there was a fire. We plan our plantations with appropriate fire breaks, have staff on site 24/7 that we train to deal with a fire and all our plantations have pumped water and fire fighting facilities available.
- Disease: there are a few well known pests & diseases that can affect our crops especially in the early years. Our on-site forest management team know exactly what to look out for and how to treat any problems as soon as they occur.
- Flooding & drought: water is a vital resource in managed forestry and it is the first consideration when constructing a new plantation. We build in dams, reservoirs, and pumping equipment so that we can retain or release sufficient water at will.
- Price collapse: As with any investment that relies on the sale of commodities, no guarantee can be given as to the exact future value of your commodities until they are ready to sell and indeed actually sold. Teak grown commercially accounts for 1% of global production, with the balance coming from wild stocks which are currently being outlawed from felling. Agarwood is now moving away from being sourced from trees grown in the wild and into plantation grown stocks. So both have a market which is currently growing and will continue to be in demand for generations to come. In addition the world's current population explosion is driving up demand (and prices) for all commodities.
What if Oxigen Investments goes into liquidation?
First we don't aim for that to happen! But if it does, the main thing to remember is that you own the title to the land along with your lease. You even have rights over adjacent property to get access to your land. So if either company goes into liquidation you will retain the land and trees until they are ready to harvest.
What if the management firm goes bust?
If the management firm goes into liquidation you merely appoint another management company from our suggested list and they carry on looking after your trees. As you pay for maintenance annually you are not at risk of losing any money should this occur.
So in either unlikely event your investment is safe!
Why own trees?
There are many factors to consider when buying; security and profit are obvious considerations and we perform well on both these counts. However, there is something rather nice about owning trees. They are natural living things; you can walk amongst them and watch them grow. You can smell and breathe the clean air and enjoy the peace of the forest. We believe that growing trees is good for the planet and more fulfilling than some other traditional investments. More than anything you are contributing not only to the future of our environment but also the communities who live and work around our plantations.
How can I find out more?
Freephone: +44 (0)800 021 33 44
Email: enquiries@oxigen-investments.com