Maderas Sostenibles/self-description

Maderas Sostenibles SA is offering various timber investment opportunities in Nicaragua. The smallest investment is 1 hectare of teak with 1300 trees and outright ownership of the land and trees for $15,000 USD. MSSA will manage and harvest the trees on a contractual basis over the life of the plantation. MSSA also offers existing farms with native hardwood species or teak from 5-10 years old.

For larger investments Maderas Sostenibles will contract to acquire, plant and manage for its plantation clients. The company currently extracts, mills and exports sustainably harvested tropical hardwoods felled in a hurricane in 2007. MSSA's expertise in processing and exporting will ensure the highest return on your investment.

Nicaragua is perfect for reforestation and timber plantations because the land and labor, which are the major inputs in a plantation, are less expensive than in Costa Rica or Panama. At harvest the wood is worth the same so these lower costs result in a higher return over the life of the investment. Outright ownership of the land is an additional opportunity for gains. The government is offering various incentives to reforesters and the climate and soil are perfect for high value species like mahogany, teak, and spanish cedar.

Forestry Investment Opportunity in Nicaragua

Maderas Sostenibles is offering an environmentally and socially sustainable investment opportunity in the southern Pacific coastal region of Nicaragua. Maderas Sostenibles, a multi-dimensional Nicaraguan forestry company with American founders, has observed both the value and demand for certified tropical timber and recent opportunities for sustainable investment in the Nicaraguan forestry sector. With today’s market prices and the rapid growth rates of tropical plantation species, well-managed precious timber holdings are a sensible and attractive investment. As world forests continue to disappear and demand increases for sustainably sourced exotic timber the prices for this renewable natural resource will undoubtedly continue to increase.

Luna Roja 2011 is the first phase of a project to reforest 1000 hectares (2500 acres) in the pacific coastal region of Nicaragua over the next 5-7 years. The objective of Luna Roja 2011 is to reforest 132 hectares (325 acres) of pastureland with the long-term goal of certified lumber production over a project life of 20-25 years. Our short-term goal is to establish Luna Roja 2011 as a certified marketable plantation in 5-7 years. To establish this timber holding Maderas Sostenibles will plant approximately 90,000 Teak trees and 30,000 high value native species such as Mahogany, Pochote, Spanish Cedar, and Rosewood. Final selection of species and proportion will be determined by soil and topography studies, which are ongoing. We plan to plant 85% of the plantation in year 1 with a 15% replanting in year two to maximize plantable space and account for mortality in year 1.

Total projected investment is $1.26 million dollars over 10 years, with approximately 55% paid in the first two years. Projected land cost is 25% of the total investment. Projected cash flow for this tropical timber holding provides the investor with 14-16% IRR over the life of the project. In addition, the investor will own fee simple title to the land acquired at a competitive price. Land appreciation is not included in the financial projections, nor is increase in price of wood over inflation.

Besides the attractive returns for this asset are many social and environmental benefits:
1) The project will create 40 competitive jobs in an impoverished developing country.
2) A renewable raw material resource will be created which will lead to indirect employment through value added processing and manufacturing.
3) Deforested pasture will be restored to forest providing sanctuary to wildlife and protecting water sources.
4) The local microclimate will be changed as the trees cool the surface and protect the depleted soils from further erosion.
5) 35,000 tons of carbon will be captured and converted into a renewable natural resource, affecting a positive response to global warming.

Contact us for more information on our forestry investment opportunities in Nicaragua

Maderas Sostenibles, SA

See Maderas Sostenibles page.