Teak Tree Investments
Of the many species of tropical rainforest hardwoods that are growing on our tree farms, teak is the only species for which sufficient historical data exists to allow us to make reasonably detailed projections of potential harvests and yields.
We grow teak at Oxigen plantations using the latest scientifically proven cultivation methods including growing from tissue culture as opposed to seed. This process significantly shortens the growing cycle from 25 to 16 years and consequently provides quicker returns.
Tissue culture is the process of taking tissue from the best performing teak trees most suited to our geographic and climatic conditions and growing the tree from this as opposed to seed, which is far less reliable. Also the trees are initially cultivated in the laboratory giving them a head start when they are transferred to the plantations.
The following projections will help illustrate the likely harvest schedule and yields from growing 300 teak trees on the plantations. When tree farming first began, projections were based on historical price information, growth and yield data from other plantations.
The tables therefore reflect the actual results from our first thinnings and the original historically-based data for the subsequent thinnings and final harvests.
If, after you review these projections, you have any questions about having us grow trees for you, please feel free to call or e-mail us.
The harvest dates are for projections only, the actual dates will be up to you, the tree owner.
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| No. of Trees |
Price | Care and Maintenance Fee* @ 10% pa for first 5 yrs |
Total Outlay (over 5 years) |
Projected Harvest Value |
IRR (%) | Total Net Return |
|---|---|---|---|---|---|---|
| 300 | £10,000 | £1,000 pa | £15,000 | £193,950 | 17.91% | £193,950 |
For detailed breakdown of projections please download our pdf below, including projection notes.
| No. of Trees |
Price | Care and Maintenance Fee* @ 10% pa for first 5 yrs |
Total Outlay (over 5 years) |
Projected Harvest Value |
IRR (%) | Total Net Return |
|---|---|---|---|---|---|---|
| 600 | £20,000 | £2,000 pa | £30,000 | £387,900 | 17.91% | £387,900 |
For detailed breakdown of projections please download our pdf below, including projection notes.
| No. of Trees |
Price | Care and Maintenance Fee* @ 10% pa for first 5 yrs |
Total Outlay (over 5 years) |
Projected Harvest Value |
IRR (%) | Total Net Return |
|---|---|---|---|---|---|---|
| 1,200 | £40,000 | £4,000 pa | £60,000 | £775,800 | 17.91% | £775,800 |
For detailed breakdown of projections please download our pdf below, including projection notes.
Please note these figures are summarised, Teak produces revenue at 4, 7, 10, 13, 16 and 18 years. For detailed breakdown on projections please click on the pdf download link below:
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.
