Tag Archives: industry
It’s Not Just The Trees That Grow at APC !
Tuesday, 25 June 2013 Asia Plantation Capital, one of the regions fastest growing plantation companies, recently passed a new milestone in its history and development; planting their 6 millionth tree since 2009. APC is expanding its operations in Thailand creating at least 250 new jobs on new plantations being established near their main agarwood distillery, bringing important economic benefits to local communities. This adds important rural jobs to the numbers already created by APC in the North East region of Sakon Nakhon where they have now established over 60 plantations. The distillery and associated businesses include state of the art finishing and processing production lines for agarwood oil & infused chips, agarwood resin, agarwood rice, incense sticks and a range of raw materials for food supplements as part of its joint venture with AgarTechAsia. Barry Rawlinson, group CEO “When APC started we focused on establishing plantations and farming businesses, not looking beyond the plantation gate for sales. Today we have a fully integrated business model investing heavily in the manufacture and marketing of end products. Planting and growing trees is only part of our story, alongside we consider social impact and invest in local communities where we operate for long term sustainable growth”. Strategically the group has established a diverse range of standalone businesses; using Oud oil from agarwood trees to produce fine fragrances for the International Fragrance Industry, manufacturing products for the pharmaceutical sector, construction of Sustainable Homes, plantation and agricultural consultancy, tree nurseries for local communities to access, and Asset and Wealth Management businesses. Recently a joint venture with AgarTechAsia focuses on cutting edge technologies and new consumer end products from the agarwood. These businesses are driven by one common factor, sustainable plantations and farms which create sustainable products for the rapidly expanding numbers of environmentally conscious consumers worldwide. Recent plantation projects the company has undertaken include feasibility studies and expansion into new hot spots for the global investment community and wider financial sector. Projects range from sustainable Palm Oil plantations in West Africa, to teak and agricultural food crops in Myanmar. In Ecuador the APC Group are considering investments for the plantation sector as part of the Ecuadorean Governments forward thinking agricultural and plantation sector investment programmes. The 6 million planted trees mark and 250 new jobs in rural Thailand are just two milestones in the successful growth of Asia Plantation Capital. APC is fast becoming a leading player in the sustainable plantation sector. With local people at the heart of their operations, and sustainable practices adopted throughout their agro-forestry; they are a shining example of the people, planet, profit concept which inspires modern sound business practice today. — About Asia Plantation Capital (www.asiaplantationcapital.com) Asia Plantation Capital is an owner and operator of a diverse range of commercial plantation and farming businesses across the Asia-Pacific region and now increasingly globally, part of the Asia Plantation Capital Group of associated companies. Their focus is on multicultural and diverse plantation projects geared to the domestic and commercial demands of the countries in which they operate. Working closely with and supporting fragile local communities is an underlying core principle of the APC business, providing social and cultural support as well as investment to move these communities away from traditional deforestation and illegal logging activities as a main income source. Established officially in 2008, although operating privately since 2002, the group now has plantation and agricultural projects on four continents with operational projects at various stages in Thailand, Malaysia, Laos, India, Cambodia, Sri Lanka, Mozambique, The Gambia, North America and Europe. — For further information, please contact:- Asia Plantation Capital, 3 Pickering Street, #01-68 Nankin Row, China Square Central, Singapore 048660 Tel: +6562223386 Fax: +6562212197 Email: pr@asiaplantationcapital.com Continue reading
IPD UK Forestry Index
Fiona Mannix Associate Director of RICS Land Group (RICS) 15 May 2013 This week I attended the launch of the IPD UK Forestry Index in London. This index is calculated from a sample of private sector coniferous plantations of predominantly Sitka spruce in mainland Britain. For 2012 this index produced a significant return of 18.3%. The index as it stands covers five regions; North / Mid / South Scotland, North England and Wales – South of England being excluded for obvious reasons. As at Dec 2012, the index represented results from 148 plantations with a combined value of £220.7 million with over half of that value located in Scotland. The point was made that the index represents upland forests. Demand for commercial forests in Britain currently outstrips supply – a familiar tale to many involved in the farmland market. While commercial forestry, as with farmland, enjoys significant tax advantages it’s important to note that there are a range of other drivers also leading to demand. Land based assets remain attractive to investors. For those who accept the longer term nature of commercial forestry investment, it provides an alternative home for cash deposits in times of low interest rates and is also suitable for those seeking a stable less volatile investment. While the main component on the return side is the capital value appreciation of the land, there is a return on the timber sales side. While the very nature of commercial forestry means cyclical felling provides investors with irregular returns, it does yield substantial income. It was very interesting to note that over the past five years commercial forestry showed a total return of 17.7% versus the all commercial property category which showed an overall return of 0.7%. While we know that the last five years is not representative it is nevertheless worthwhile to note that even over the longer timeframe of 20 years commercial forestry returned 8.1% versus all commercial property returning 8.9%. A number of interesting additional points were raised throughout the event and in particular during the Q&A session which I have outlined below. Is forestry the perfect hedge? Commercial forestry as an asset class can be used to mitigate risk elsewhere in an investment portfolio There will be increased demand for wood in the longer term Increasing demand coming through on the biomass side The industry needs to be able to explain itself to potential investors Is there sufficient land to keep replanting at the rates required? Will the industry be in a position to satisfy the demand requirements over the longer term? How should the planting of commercial forestry be incentivised? What to do about planning issues? The future is bright – the future is green Continue reading
New Forestry Investment Fund Launched
29.05.2013 A new fund has been announced that will focus on investment in forestry assets across Europe. The ForestCare Investment Fund is set to be launched by Diapason Commodities Management, which is a signatory of the Principles for Responsible Investment initiative and as such follows the guidelines relating to fiduciary duty. As a result, investments will cover forest properties and activities resulting from the industry, including forest management, wood production and processing. Furthermore, all potential investments will be subject to stringent checks with regard to sustainability, in particular their environmental, social and corporate governance impact. However, the fund will not restrict itself in terms of the type of investment, taking a number of assets into considerations, including equities, bonds, forest plots and all related derivatives. In an effort to take advantage of the comparatively low levels of private forestry ownership, ForestCare will include plots or land leases covered at least partially by forests exclusively in Europe. Forestry properties will form one-fifth (20 per cent) of the entire portfolio. On top of taking ownership of and managing forests across Europe, the fund will look to invest in shares or bonds of companies already operating within the forestry industry, providing they are doing so responsibly. Related derivatives and other investment opportunities within the forestry sector will also be considered, including biodiversity credits, carbon credits and REDD credits, which relate to efforts to mitigate the effects of deforestation. Mark McDonnell, managing director of Diapason Commodities Management, said: “ForestCare is a completely new way of approaching investment in forestry and with our approach to biodiversity in forests this investment opportunity has forest sustainability at its core.” “Crucially, the fund is structured to reconcile economic profitability with the need to make intelligent use of natural resources – providing investors with a diversified portfolio which is uncorrelated with other asset classes,” he added. Designed for those looking to invest in pension funds and institutional investors, ForestCare will have a minimum investment of €125,000 for the A class and €1 million for the institutional or I class. HD FestForest provides forest management in Estonia, Latvia and Lithuania and is a subsidiary company of HedeDanmark. Continue reading
