Forestry Investment - Private Client

Case Study

Forestry Investment - Private Client

Forestry investment is frequently overshadowed by other alternative asset classes such as Gold or buy-to-let properties. However, a thorough examination of the basic fundamentals of a well-managed forestry investment reveals that Forestry offers far superior fundamentals for a less volatile and more successful investment compared to other popular investment options. Let's take a deep dive into those fundamentals to get a better understanding of Forestry.

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Project

The forestry investment is situated on a 56-acre site in Ireland, providing a picturesque and environmentally rich landscape for timber growth.
The site was planted in 1994, marking the beginning of a strategic investment in sustainable forestry management.

With the trees reaching maturity, the investment is nearing its harvesting phase, expected to occur in the coming years.

Performance

Based on careful management and growth, Klimate Smart expects to generate between £6,500 to £8,500 per acre at clearfell in the next couple of years.

The projected revenue includes income from various sources, including planting grants, thinning operations, and the final clearfell.

Importantly, all returns from the forestry investment are tax-free under current legislation, enhancing the attractiveness of the investment and maximizing investor returns.

Impact

The forestry investment demonstrates Klimate Smart's commitment to sustainable land management practices, ensuring the preservation and regeneration of forests for future generations.

By sequestering carbon dioxide, enhancing biodiversity, and promoting natural habitat preservation, the investment contributes to positive environmental impacts, aligning with global sustainability goals.

The project fosters community engagement and support by providing economic opportunities, promoting environmental education, and enhancing the overall quality of life in the region.

Forestry Investment fundamentals:

1. Investment Amount: £10,000 provides 2 acres of mature commercial forest.

2. Annual Income: This will be generated through the government grant scheme payable annually. This is a fixed amount equal to £408 per acre per year. Income is tax free.

3. Exit & Returns: Exit will be achieved through final harvest of the timber. This is calculated at £6,500 per acre plus annual income combined to give a final return of £21,160 Tax Free.

*All calculations are based on market prices, please request a personalised Investment calculator specific to your requirements.

Through effective management, strategic planning, and a focus on sustainability, the forestry investment managed by Klimate Smart presents a compelling case for investors seeking both financial returns and environmental stewardship. Under current legislation all income from forestry activity is free from Income tax. There is No Capital gains tax and there is No Inheritance Tax. You can download our Tax Report to learn more.

1 Here you can see the path entrance to our Forest Project surrounded by Gorse bush on either side.

2 Here we see rows of Sitka spruce trees planted in rows for ease of access for machinery when it comes to final harvest.

3 In this image you will see that the forest has reached maturity and there are forest roads in place in order to facilitate a final harvest.

4 An optional caption for the image that will be added to the gallery. Enter any descriptive text for this image that you would like visitors to be able to read.

Case Study