Why Invest in Teak?
Teak plantations offer an attractive investment opportunity due to their unique characteristics, positive market trends, low risk profile, diversification and high returns.
Teak forests produce timber, sequester carbon dioxide (CO2), maintain biodiversity, protect soil, and conserve water.
Low risk: Teak is a premium hardwood with excellent timber qualities and low risk (pest, disease and fire resistant).
Value increases over time: Teak is an asset that appreciates in value over the years. The growth rate of teak trees ensures that the wood becomes more valuable as it matures (constantly compounding), making it an excellent long-term investment.
Strong economic returns and protection: Economic returns are driven by high tree growth, high product demand, increasing land values and rising teak prices. Teak tree value is locked in no matter the condition of financial markets.
Diversification: Teak investments provide diversification in your portfolio, reducing risk by not solely relying on traditional asset classes like stocks and bonds.
ESG goals: Teak plantations are a green asset, offsetting deforestation and carbon emissions and supporting local communities in rural areas with high unemployment.
Highly valuable and versatile product: Teak is one of the most valuable tropical hardwoods in the world.
Stability and resilience: Teak has proven to be a resilient and stable investment over time. Its demand in various industries, such as furniture manufacturing and boat-building, remains consistently high.
Sustainable and Environmentally Friendly: Teak plantations support sustainable forestry practices. Investing in teak means contributing to carbon sequestration and reducing the environmental impact of deforestation.
Increasing global demand: Teak's global demand continues to rise, especially in emerging markets where there is a growing middle class with an increasing appetite for quality furniture and construction materials.
High ROI: Economic returns driven by high-quality tree growth, high demand for teak products, increasing land values, and rising teak prices.
Product Attributes
T E A K
Recognised for its beauty, strength and stability
Possesses optimal timber qualities as it is resistant to water, chemicals, fungus, fire and pests.
Has a wide range of end-uses for outdoor and indoor products including window frames and doors, furniture (indoor and outdoor), panelling, staircases, decks, boats, bathroom items such as shower mats and much more.
It has low mortality rates and is affected by a very limited number of diseases.
It is the only commercial high-grade tropical hardwood that grows well in plantations.
Most commercial hardwoods and softwoods require high energy or toxic inputs to mimic teak characteristics.
