SA Paulownia Investment Co. (Pty) Ltd

P O Box 586

Gallo Manor, 2052

Tel : (011) 802-1167

Fax : (011) 802-7060

Fax to email: 0866 724 456 (confidential)

 

What do we offer?

Invest in Forestry. Invest in the Future. Invest in your own future, the future of others and the future of planet earth!

By investing a minimum lump sum of R 200,000.00 into a Paulownia Forest you will:

-          Reap a return of 5 to 7 times this amount every 7 to 8 years (at harvest) for between 3 and 5 harvest cycles. This is a 30 to 50 year investment!

-          Fight Global Warming!

-          Create Jobs for Impoverished Rural Communities!

 

What do we do?

The SA Paulownia Investment Company (Pty) Ltd, created an investment opportunity that can act as a medium to long term investment. This investment makes financial sense, it:

·         Will generate an ever increasing return over the long term;

·         Is not dependent on political risks or decisions;

·         Has an element of off- shore returns, but is not part of your allowance to export funds.

 

S A Paulownia Investment Company (Pty) Ltd offers an investment that:

1.       Makes Investment Sense – by generating a significant return on an ongoing basis, and not just once off, for you;

2.       Makes Environmental Sense – every tree planted positively impacts Planet Earth, your investment is not only for you but also an investment in the future of the Earth;

3.       Makes Social Sense – employment is created in the rural communities where it is needed most leaving, not only yourself but, others better off through your investment

 

If you are looking for MONEY that grows on tree, it is no longer a fantasy. Now we can offer you – for the first time in Southern Africa – a Forestry Based Investment where “Money does grow on Trees”.

  

What are you investing in?

The tree, the Paulownia Megafolia tree has been called a “wonder plant”; it is a “miracle tree” that cleans up the environment, and a super fast grower.  It is that and much more.  The tree is the fastest growing hardwood developed by man.  It is a hybrid plant that will re-grow from the stump within seven to eight years, and will repeat this cycle for between five to eight times. In terms of return, this is a once off investment that will generate on-going returns, over the next fifty years.   

The Paulownia Megafolia Tree, is a highly sought after, fast growing, environmentally friendly, hard wood which grows extremely fast, creates tons of clean air, and is great for the environment.  The lumber that is cultivated from this beautifully tree, is sought out all over the world, and the market will pay a very handsome rate for the lumber when it is harvested.  The tree will be planted in a number of stable African countries, where it will provide work, profit and security for the local population to help bring this crop to the market.  

The SA Paulownia Investment Company (Pty) Ltd, through its association in Swaziland, Mozambique, Zambia and a number of other stable countries, has a forward sale agreement from International lumber buyers, which will provide guaranteed prices for their investors to create a medium to long term investment that will generate as much as 28% return annually.  This investment will not generate a once off single lump sum amount, the tree will re-grow again and again to generate a similar return seven to eight years later, and will repeat the cycle every seven years for as many as fifty or more years. Each harvest cycle generates an additional return to investors. 

There will always be a wood shortage, and demand has outstripped production as far as man can remember.  The final sale price, which determines our profit or loss, can be pre-sold, or only sold when the price is right.  Each block of shareholders will have the right to make this decision on their own.

 

Research & Development - Through meticulous research, spanning more than 24 months and based on international trendsetters (successful Australian and US investment models), the SA Paulownia Investment Company (Pty) Ltd has taken advantage of a number of trends in the market (including);

o         Alternative Investment structures;

o         Ecologically Friendly Investments;

o         Socially Responsible Investments;

o         A Declining Lumber Supply;

o         Natural finished wood products.

 

All Encompassing Product Offering - Lumber farming will fill a much-needed shortfall that the world market has been unable to fulfill. And will provide much needed products for the current market. With this business model a lucrative investment opportunity is NOW available to discerning South African investors.

 Combining the local investment model with international investments, currently not available in this sector, products, such as packaging materials, boxes, crates, boat building, fine furniture more, will answer the rising demand for cost-effective lumber. The unique combination of these products and the extremely fast growing cycle of the tree will place the investment into a very demanding and profitable market.

 

 

How risky is this investment?

No investment is without RISK – not even your money in the bank. But the good news is that RISK CAN BE MANAGED AND CONTROLLED. You do need to consider the following:  

1.       Investment Risk – this investment is an agricultural one, you will own shares in a Forestry Holding Company. The growth in your shares is dependent on the ongoing management and growth of the Plantations. Your investment is broken down into components that cover:

a.       Purchase of the seedling trees;

b.       Labour Cost – including professional consultants and services;

c.        Administration;

d.       Insurances – against fire, loss etc;

e.       Basic Infrastructure – to ensure that the Forest can be properly serviced.  

2.       Labour Risk – in Africa the fear is the loss or damage to the Forests due to labour disturbance of disruption. This factor is mitigated by the following factors:

a.       The local population is employed to work in the forests – by destroying or damaging the forests they will be damaging their own livelihood;

b.       A portion of each Plantation is held in Trust for the local community – this ensures “buy in” by the local community – the people who work in the Forests;

c.        The local communities therefore provides the labour, are the watchdogs against theft or malicious damage and will profit in a number of various ways, as long as the trees are cultivated to final harvest.  

3.       Operational Risk

a.       Your investment is placed into an the SA Paulownia Trust account (administered by Tayfin Chartered Accountants). Funds can only be released from this account at clearly identified and monitored milestones;

b.       The Operational roll out and management of each Forestry Investment Project will be managed by The SA Paulownia Investment Company (Pty) Ltd – a company with local representation in each of the countries where forests will be planted.  

4.       Political Risk

a.       Each Forestry Investment Project is situated in stable regions and countries

b.       SA Paulownia Investment Company work with locally based consultants and ensure good relationships with local authorities  

5.       The investment is transferable, renewable, can be passed onto your children.

 

 

How can you invest & how can you protect yourselves?


SA Paulownia Investment Company (Pty) Ltd has created an investment opportunity to enable small investors to pool their resources into a private company, Honeylane Trading (Pty) Ltd, to enable investors to participate in major decisions regarding their investments and to determine each and influence everyone's investment performance. The SA Paulownia Investment Company (Pty) Ltd, has secured the availability of the land, the right to plant and distribute our wonder tree, and has created the mechanism to enable people to pool their funds to create a workable forest that will generate a very stable crop of lumber. 

All funds are facilitated through the SA Paulownia Trust Account (administered by Tayfin Chartered Accountants) with funds being released into the project only at clearly defined and monitored milestones. Shareholders in each holding company are required to nominate directors to make crucial decisions on their behalf.  

What is the legal entity that you will be investing in?

A private holding company will be formed for each block of 100 hectares of land, in this case Honeylane Trading (Pty) Ltd.  The local Tribal Trust will always own the land with a ninety-nine year leased back to The SA Paulownia Investment Company (Pty) Ltd.  This gives the shareholders the right to utilize the land, water and to grow, cultivate, and use the land for the sole purpose of growing Paulownia Tree for both lumber and any additional cash crop that will be developed on the section of land allocated.  

No more than a maximum of 50 shareholders per block of land will be offered, less may be encouraged. A minimum of one and a maximum of five directors will be nominated in each company to run the project in the normal manner of a South African registered company.  The pre-nominated auditor is Tayfin Auditors, who is responsible for the Trust accounts, auditing on an annual basis, transfer of funds both local and trans border, financial and tax controls.

 

How legal is it?

Share certificates in Honeylane Trading (Pty) Ltd, will be issued to shareholders in South Africa.  Shareholding in the South African based company is subject to TAX laws of South Africa, and individual tax according to the tax laws prevailing at the time of sale. All registration, investment, marketing and controls will be subject to the FICA requirements at all times. All companies, that own a block of the registered forest will be managed based on recognized principles of business control with an annual audit, taxes paid when required, and have a legal entity body to ensure that no shareholder rights are compromised.  

Are the investments protected from unscrupulous operators?

All incoming investments are placed in an the SA Paulownia Trust Account to be strictly controlled by an accredited and qualified professional Auditor, Tayfin Audiors. Shareholding and business structures will be initiated once 50% of each block has been sold.  Exporting of these investments will only be done within the rules of and controls of current exchange controls.  All bank accounts, audited financials, declaration of dividends, and sale of harvested timber will always be at the discretion and decision of shareholders, controlled in a proper business manner.   

You may sell your share or a portion of your share at any time along the process. This shareholding will be offered to existing investors first, and then if not taken up will be offered to the open market. The price or value of your shares will be determined by open market value or perceived value of the lumber and determined by the forward sales contracts in place.  Prices in the early stages of tree growth will always be lower than at a stage closer to the harvesting of the lumber.  Your share may be used within South Africa as collateral against a loan, and you will be taxed within South Africa as and when the share has a value or generates income or withdrawals.

 

How much money can we make?

This is obviously the CRUNCH QUESTION. Each Forestry Investment Project generates a range of income streams – the CORE of which is the sale of lumber at harvest (every seven or eight years).  

These projections are based on:

1.       A 25% harvest – that allows significant margin for generating shorter term income streams (fencing and packaging markets) and for loss;

2.       A harvest-selling price of US$ 200. This market is generally priced in US Dollars and current prices are over double this price. We use this low price to provide minimum projected margins in securing a forward contract on the lumber.

 

Forestry Investment Project: Investment Returns Projection

100 hectares/R 10,000,000.00 raised

Year

Harvest

Capital Value (Shares)

1

 

R   10,000,000

2

 

R   11,000,000

3

 

R   12,100,000

4

 

R   13,310,000

5

 

R   14,641,000

6

 

R   16,105,100

7

 

 R   17,715,610

Total @ Harvest

     R 50,000,000

Total Value Generated (Yrs 1 to 7)

(Harvest + Capital Value)

R 67,715,610

 3.       This equates to a return of over 28% per annum (conservatively) 

 

CONCLUSION – OUR INVITATION, YOUR CHOICE?

The SA Paulownia Investment Company (Pty) Ltd invite you to participate in one of the most EXCITING INVESTMENT OPPORTUNITIES available by purchasing shares in Honeylane Trading (Pty) Ltd.

 

The choice is yours, you can invest in the same way everybody else has in the past and possibly end up on the wrong side of a very tragic statistic - being unable to sustain your lifestyle at retirement - or you can break the mould and invest with The SA Paulownia Investment Company (Pty) Ltd Forestry Investment Opportunity today and change your financial future for the better.

 

It's either the same old non-performing investments or an Investment that not only follows the strategies of some of the top 2% of wealthy individuals worldwide but also provides you with substantial ongoing returns.