1 Paulownia Tree
This offer consists of:
1) Paulownia, a fast-growing tree with premium class lightweight hardwood demanded in shipbuilding, furniture and construction industries.
Planted in May 2020 in the EU/Romania.
2) Bundle of services for the trees during its growing cycle of 8-10 years
3) Buy-back of the trees at the end of the growing cycle
4) 8% p.a. expected profitability (40 euro + 8 years = 74 euro)
WHAT YOU PAY FOR, OR WHAT THE LOT INCLUDES
BLUE PART (50%) -> All the Farmer services & Land rent
YELLOW PART (25%) -> All the protection services, incl. Smart Forest
RED PART (25%) -> Government|taxes & Other money collectors
ECONOMICS | PROFIT PREDICTION
The chart shows five possible models of tree growth in value: Pessimistic (5% p.a.), Basic (8% p.a.) and three Optimistic models. For example, in the Basic model - when buying a tree for 40 EUR in 2022, it is possible to expect a selling price of 74 EUR in 2030.
This corresponds to the Paulownia timber price level of 300 EUR/m3, assuming that 1 tree will produce 0.25 m3 of timber.
Look at the table below to see how we got these numbers.
1) Stable job for farmers in remote rural areas of the EU/Romania
For planting Paulownia we use unutilized agricultural land.
2) Carbon (CO2) neutralization - x30 times more and faster than other "usual" trees.
Paulownia leaves are large, especially in the first year of growth and they help to clean the air from carbon and other pollutants. During the winter they are used as fodder or as fertilizer, thanks to the high nitrogen content. The deep rooting system of trees allows to keep the soil from erosion and helps to manage water flows.
3) We call to use timber from plantations, not from natural forests.
1 ha of Paulownia/SmartForest saves up to 30 ha of the natural forest!
APP* (* Available for testing purposes only)
Functions and options:
1. Customer's portfolio, collection of trees
2. Transparent rating & register
3. All the needed information about Smart Forest
Our understanding of “investment” and “profit” is not traditional or financial, measured in fiat money/EUR/USD.
We understand and measure the “profit” in the amount of grown timber.
We are not a financial institution, we cannot guarantee or promise financial profit, and we cannot impact or define the timber market, therefore according to the law, we have to warn you that this sort of investment belongs to the “high risks”.
- Plantation location
- EU, Romania, Greater Wallachia, 44°45'55.04"N 25°46'21.37"E
- Plantation size
- 2 ha, 20.000 m2, 1500 trees
- Planting density
- 750 trees per 1 ha, 3m x 4m
- Planting date / Tree age
- 05.2020 / 2Y 2M
- INCLUDED: irrigation with fertilizers, tree-cutting, etc
- INCLUDED, to be announced later
- IoT & sensors
- 2 devices per 1 ha: Will be installed on AUTUMN '22 / SPRING'23
- Lifecycle / End of the investment period
- 8-10 years / 2028 - 2030 *
- Expected timber
- ~0,25 m3 / per tree **
- Estimated profit
- ~ 8% p.a. ***
* Harvesting could be made when the trees reach at least 0,25 m3. Smart Forest has the right to extend or shorten the growing period depending on the trees growing rate and timber market rate (more you can read in the service agreement)
** The actual price of Paulownia timber on European market is between 300 - 500 euro /m3.