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The Princess Tree Investment Structure
The Princess Project presents a unique opportunity to invest in the highly lucrative timber industry with the added security of a bonded purchase guarantee.
The tree investment structure has been designed with maximum customer security in mind, and works as follows:
 The partner plants up to 750 trees per hectare.
You receive 660 trees per hectare of land purchased.
The 90 remaining trees are maintained as a buffer.
A lease is registered in your name for 21 years, which will produce 4 timber harvests.
(Note, the 4 harvests are expected take 20 years, but the lease is granted for 21 years as a precautionary measure).
Returns are based on a harvest at the end of each 5 year cycle.
You have the option to sell the timber from each harvest at a guaranteed purchase price which will be USD 275 per m3 for the first harvest.
The guaranteed purchase prices for your timber for subsequent harvests will be adjusted in line with the US timber inflation rate.
A 5-year old Paulownia tree produces at least 0.2m3 of processed wood.
A total of 528m3 of processed wood is produced per plot over the 4 harvests.
A 30,000 USD investment (available until 31.12.09), will yield a return of 145,200 USD per plot
The harvesting, processing and transportation is carried out by a management company of your choice (unless you wish to organise it yourself) which is likely to charge around 10-11% of the value of your timber sales.
Management fees are taken from the timber returns, nothing more is payable after the initial investment.
After this has been deducted, you receive a gross return of 21.8% per year.
This produces a net return of 13.7% per annum over 20 years, after the initial investment amount has been deducted.
The Princess Tree Project - Returns Calculations
An Princess Project investment amount of just USD 30,000- 40,000 (depending on time of purchase) will buy you 10,000m2 (1 hectare) of timberland yielding 660 Princess trees for a 21 year period.
The princess trees will be harvested 4 times during this period at approximately year, 5, 10, 15 and 20, giving you an average simple annualised return on investment of 11.3%- 13.7% p.a.,
depending on time of purchase.
These returns are based on the prices being offered and guaranteed by World Paulownia Institute, backed by a bank bond. WPI is willing to take the entire project’s timber harvested over the 21 year term, but you also have the option of selling your timber elsewhere at possibly more attractive prices.
Figures per 10,000 m2 (1 hectare) plot, based on an investment amount of USD 30,000:
| Trees / ha |
660 |
| Price / m3 |
$275 |
| Total return |
$145,200 |
| % annual |
13.7% |
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