We are interested in expanding our tropical tree plantation activities in Ngchesar State, Republic of Palau with investors who believe in the attractiveness of tropical hardwood but don’t have the possibility or the time to start their own hardwood tree farm in the tropics. If tropical hardwoods fit into your long-term investment strategy you can purchase from us any number of Cuban Mahogany trees (Swietenia mahagoni) you would like to own and we will plant and take care of your trees on our tree groves for up to 25 years exactly as we do with our own trees. Your trees are yours to do with whatever you choose.

Why Invest in Tropical Hardwood Trees

The investment outlook of timber is today as promising as it was during the twentieth century. In particular, timber is the single best performing asset of the last 30 years. From 1975-2006, timber saw average annual returns of over 13%. If you had invested $20,000 in timber in 1975, you would be sitting on over a million dollars in 2007. That is better than stocks (70% less), real estate (75% less) and bonds (76% less).

Our Story

We own groves of mature Cuban Mahogany and were inspired by the many articles about growing trees as a long-term investment and by potential investor's enquiry. Trees in the tropics have a growth rate that is eight to ten times faster than those in cooler climates. Harvesting can take place many years earlier, allowing a better return on investment. We decided to set up and expand our tropical tree plantation in the Republic of Palau and grow more of our own trees. We selected Cuban Mahogany because we already have it in our groves and for its beauty, and also because it is one of the highest valued tropical hardwoods. The 2005 valuation of Cuban Mahogany is about triple that of comparable hardwoods, up from about double in 2002. The price is likely to continue to increase dramatically, as the demand for Cuban Mahogany is definitely not dropping and the supply is clearly shrinking.

At the beginning of 2000 we started to expand our tree groves in Ngchesar State, Babeldaoub Island, and the largest island in the Republic of Palau and continued planting Cuban Mahogany and other tropical hardwood trees along the river bank on our property. We also have mature groves of Cuban Mahogany trees (Swietenia mahagoni) and other indigenous tropical trees planted in an area of about 100 acres out of over 200 acres in our privately owned property.

Our Motives

We have multiple motives for making this offer to potential investors:

• We still have a lot of areas available for tree planting and there are many opportunities in expanding the groves throughout the property in the same area.
• Our tree planting benefits the extended members of the family in the local community by providing much needed employment in the area. The more trees we can plant the more families and relatives will be employed.
• Trees are among the earth's most useful and beautiful products of nature. Trees are crucial to mankind's survival. The oxygen we breathe is released by trees and other plants - two mature trees provide enough oxygen for a family of four; trees prevent erosion; trees provide food, shelter, and material for animals and humans. As trees grow they help reduce global warming by removing carbon dioxide from the air, storing carbon in the trees and the soil, and releasing oxygen into the atmosphere. One acre of trees removes 2.6 tons of carbon dioxide per year. Investing in trees helps improve our environment!
• Trees planted on plantations offer to woodworkers an alternative to material acquired through rainforest clear-cutting, in this way relieving some of the pressure in the remaining world's rainforests.
• Our long term vision for the future use of the land we own is to convert it into a protected privately-owned forest by means of an ecological easement of the land. As a matter of fact we have already allocated sub areas within our plantation to non-commercial plants and trees without intention of harvesting them. These fruit and shelter trees are planted to provide habitat for wildlife, in particular birds. We plan to have as much land we own converted to sustainable forest as we harvest planted trees.

Your Motives

Your investment motives can be various. You can invest in Cuban Mahogany trees for you or for anyone you choose. You may want to use the proceeds of the sale of your trees for your retirement or a college education for your children or grandchildren. You may give or transfer your trees rights to anyone, any charity or organization you wish. You may choose to keep the timber from your trees for your own use, sell it yourself, or have us sell it for you. You can choose to keep your trees forever on our plantation if you want to compensate your carbon footprint, or if you just care so much about trees.

Trees like Cuban Mahogany are a tangible real asset. You can visit our tree plantation and see and touch your trees at any time. Your trees are yours to do with whatever you choose.