Forestry Investments in the Eastern Plains of Colombia
What is it about?
Colombian Timber is a unique agro industrial investment opportunity for investors willing to diversify into an industry that per its nature and high volume of cash requirements is usually only available to big private and institutional investors.
By using a crowdfunding methodology, this completely turnkey investment allows particular investors from all over the world to profit from the rising forestry industry in Colombia, buying farmland for as low as U$ 200 per hectare, with the purpose of planting Acacia Mangium and Eucalyptus Pellita tress, harvesting them in just 7-8 years and converting them into wooden biomass chips or pellets for local and/or international energy generation use.
Investors become shareholders of the developing corporation which owns the land and every single planted tree. The minimum investment stands at 120 million pesos (around U$ 40,000), and represents certain amount of company shares, but investors are welcome to buy as many more shares as they wish.
• The forestry industry in Colombia is rising and on its way to becoming a major player in the country’s economy. It is heavily promoted and incentivized by the government by means of tax exemptions and economic benefits. Internationally, the growing demand for food and renewable, environmentally sustainable sources of fuel is a matter of upmost concern.
• The region of Vichada has, by far, the most suitable farmland in the country for agro-industrial developments, with +6.3+ million hectares of flat, virgin savannas, a tropical weather, and a steady raindrop regime perfectly suited for forestry. Still, the region offers unique entry opportunities due to the fact that it is in the process of being developed. Farmland can still be purchased for as incredibly low as U$200 per hectare. That’s right: just a couple hundred dollars for 2.5 acres of land.
• Geostrategic location: The project’s proximity to the Orinoco River allows the possibility of cost-efficiently transporting the harvested timber to Trinidad and Tobago, and then off to the different global markets.
Colombian Timber II, the project established in 2017, aims to obtain a return of 16% per year, as featured on the table, and which is represented by the selling of the harvested timber. However, additional sources of income such as the parallel Apiculture plantation apiculture exploitation, carbon credits selling, or land valuation, are not factored into the figures with the intention of keeping a predominantly conservative scenario.
COLLECTION OF PRINCIPAL AND INTERESTS
The principal and the most significant portion of the interests to be paid at the end of the term. However, there may be sooner returns derived from either parallel Apiculture activities to be developed in the plantations or the establishment of Carbon Credit programs, or both.
Plantations to be harvested in 7 to 8 years.
WHO IS LOOKING AFTER THE INVESTMENT?
The project is promoted and supervised by Gutierrez Group, who also co-invests in each year’s project. On field, all operational endeavors are carried out by InverBosques, a world-class, high-standards forestry operator, with whom Gutierrez Group has had professional relationships over the last 7 years and has now partnered with the intention of making this project reachable to our foreign clientele. InverBosques is one of the top players in Colombia’s rising forestry industry and the leading forestry operator in the region. With +56,000+ hectares under management of which +11,000+ are currently planted; and +300+ employees in the region, the company specializes in operating big-scale integrated agro industrial developments. Their broad experience in this region adds substantial value to the partnership as they are recognized as a key and the “go-to” player in connection with anything that concerns the region’s further development.
1. Get in touch with your preferred Gutierrez Group advisor.
2. Digitally fill in our KYC form here.
3. You’ll need an account of your own in Colombia. If you don’t have one yet we’ll help you open it. It’s very simple and only takes a few days.
4. Transfer funds into your own account, convert them into Colombian Pesos, and forward funds to us upon signature of investment agreement. We’ll be by your side during the whole process.
We’ll be by your side during the whole process.