Sustainable Asset Management creates Institutional Trees

Sustainable Asset Management, Singapore, has developed the Aquilaria Forestry Income Investment; one of the most carefully structured and balanced forestry investment products available today for HNWI and institutional investors looking at exposure to this asset class as part of a risk balanced portfolio. After six months of due diligence, inspection visits, meetings with end users and Institutional Investors, SAM have partnered with Asia Plantation Capital to develop this new investment product- trees are now a risk assessed asset class.

Pioneering companies such as Asia Plantation Capital have made plantations and trees more accessible to both large and smaller investors over the past decade by creating and managing specialist Agarwood plantations in Thailand, Sri Lanka. The Aquilaria Forestry Income Investment from Sustainable Asset Management enhances international accessibility to these plantations.

The Aquilaria Forestry Income Investment is available to sophisticated and institutional investors in minimum tranches of US$500,000. SAM have access to around US$50million in inventory which will be managed by APC with leverage from their proven from soil to oil program.

Trees and timber have become a mainstream part of our everyday investments. Hedge funds and pension funds have long been investing in forestry & timber plantations along with their associated supply chains; these have even outperformed stock markets.

SAM has created a product that mixes limited numbers of mature CITES approved agarwood trees with new plantings creating a 7 to 8 year investment horizon which has capital growth and income throughout. Adam Sprague, Head of Risk Analyses at SAM, describes this as “a unique financial product in a sector where returns are usually either annual and low, or long term and potentially high”. This plan is a balanced structure of income and future returns creating a risk weighted portfolio product; an income of around 8% and variable final IRR of 12 to 24%.

Adam Sprague, Head of Risk Analyses at SAM, clarifies “we have a solid and structured investment wrapper for forestry and plantations meeting all the criteria of stringent institutional and high net worth sophisticated investors with the added credentials of directly protecting an endangered species, agarwood. Our clients will become part of the process driving growth in a sustainable industry with benefits right down the chain, all the way to local communities on the ground; a net new economy and a real force for good. Investment at Sustainable Asset Management is all about people, profit and the planet”.

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Supporting Organisations

ABB
Asia Plantation Capital
Diamond Energy
Basf
City Developments Ltd
DNV-GL
Geocycle
Sindicatum
Olam