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Post by GentlemansFamilyFinances on Feb 9, 2022 16:20:09 GMT
There's a new investment up looking for £4.7m for new sustainable hardwood trees that capture more carbon and help regenerate farmland.
I've read through the prospectus but haven't made up my mind about it. It pays 8% IRR with half of the interest jam today and half of the interest jam tomorrow.
Already over £200k invested.
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Post by optymystic on Feb 9, 2022 17:26:18 GMT
hardwood trees that capture more carbon and help regenerate farmland. Can you still farm it when its got trees on it? I suppose you could raise a few pigs.
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easynow
Member of DD Central
Popcorn anyone?
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Post by easynow on Feb 9, 2022 17:40:56 GMT
More money in selling the carbon credits than faming, most animals would be a threat to the trees anyway I expect.
I think carbon credits can be sold annually, based on the age and type of tree, I expect its quite lucrative, considering the tree can be harvested and sold when it comes of age, A few investment funds have realised this of late and have been targeting this kind of investment, caused a bit of a stir last year.
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Post by nbk on Feb 10, 2022 11:46:32 GMT
There's a new investment up looking for £4.7m for new sustainable hardwood trees that capture more carbon and help regenerate farmland. I've read through the prospectus but haven't made up my mind about it. It pays 8% IRR with half of the interest jam today and half of the interest jam tomorrow. Already over £200k invested. I'm quite surprised by the volume of funds that have gone into this in 24hrs - over £400k now. I'm not convinced that it's priced correctly - just 8% for a project with a lot of unknown risk - will the trees grow in the UK? will the yield be high enough? will the demand for non-structural wood be high enough at a good enough price (in 6years time !! ) ?. Prices/demand for carbon credits may be uncertain. Also the pack generally tries to avoid this point without discussing it too much, but it is in there - the 6 monthly interest payments are coming from funds raised directly by this fundraise, so not too dissimilar to a Ponzi scheme ! Abundance used to price the early stages of projects (e.g. Celtic Renewables, Orbital etc) at a much higher price 12-15% during the risky 'build' phases and then maybe re-finance in 'operational' mode at 7-9%, but here we are going in straight at 8% despite no operational funding coming in for a least 6 years. I might go for a little chunk but maybe only to use for secondary market trading rather than keep to maturity.
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travolta
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Post by travolta on Feb 10, 2022 15:05:16 GMT
Don't do it . I plant thousands of trees. The wastage is over 25% and I'm a very vigilant landowner.
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easynow
Member of DD Central
Popcorn anyone?
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Post by easynow on Feb 10, 2022 17:33:49 GMT
Don't do it . I plant thousands of trees. The wastage is over 25% and I'm a very vigilant landowner. Why do you bother then?
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Post by GentlemansFamilyFinances on Feb 10, 2022 18:46:09 GMT
Presumably the industrial plantation forests that I know are planted and don't have anywhere near 25% wastage - if you mean that for every 3 trees planted only 3 reach maturity? Or am I missing something?
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travolta
Member of DD Central
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Post by travolta on Feb 10, 2022 19:18:12 GMT
Hardwood trees have wastage, conifers nor so much. Check to see what you are investing in. Hardwoods involve thining too,unlike conifers .
Hardwood loss is due to deer and squirrel. Thats what you are missing. Check out international hardwoods too. Ash die back et all. French hardwood forests decimated by deer. Squirrels strip sycamore to line their nests also lay waste to all hardwoode species with similar bark. Birch not so much.
I'm financially secure enough to cover the wastage,but its not necessarily a good cash crop. We import as home grown is too expensive .
My woods are for personal use and have doubled in land value in ten years . You would do better to invest in buying one directly, but not funding a commercial venture to produce timber or green thoughts. Conifers are the best commercial investment,but your return is less. Stick to BP .
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Post by peer2beer on Nov 25, 2022 21:03:54 GMT
There's a new project (or second part of the first one) about trees listed at the moment.
I've not put any money in but I did listen to a investor presentation a few weeks back and was very impressed with the company and their plans.
The company.in this case is not Abundance, who may have been on the presentation but I missed the first 10 minutes.
It's over 10 years which is good for me a d pays 8% IRR, some interest along the way and lump sum at the end.
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