Christmas Tree Investments Brochure 2015 Euro -V1.0

Christmas Tree

Farm Investments

Telephone: +34 971 221 156

Email: [email protected]

Web: www.gwdforestry.com

MODEL BASED IN EUROS (€)

mailto:[email protected]

Copyright © 2015 GWD Forestry S.L. Registered Nº B5788523

1 Copyright © 2015 GWD Forestry S.L. Registered Nº B5788523

TABLE OF CONTENTS

1. INTRODUCTION ........................................................................................ 2

2. ABOUT GWD ........................................................................................... 3

3. THE INVESTMENT ..................................................................................... 4

4. TRACK RECORD ........................................................................................ 5

5. REPORTING ............................................................................................. 5

6. CURRENT DEMAND ................................................................................... 6

7. DEVELOPMENT POTENTIAL .......................................................................... 6

8. TREE PRICES ............................................................................................ 7

9. HARVEST NOTIFICATION ............................................................................. 8

10. PAYMENT SCHEDULE ................................................................................. 8

11. AN INVESTMENT WITH REAL VALUE ............................................................... 9

12. RETURNS ................................................................................................ 9

13. HOW TO INVEST ..................................................................................... 10



1. INTRODUCTION

Once regarded as a by-product of the forestry industry, Christmas trees

have been developed over the years as a highly specialized and financially

rewarding plantation forestry crop.

Returns are produced within approximately 3 to 4 years from the sale of

tabletop trees. Investors receive full returns annually starting at year 6

through to year 9, when the best quality trees reach saleable size, ranging

in height between 5-9 feet.

In 2008 GWD New Brunswick first started to develop its Christmas tree farm

forestry project located within the Canadian province of New Brunswick.

GWD has now harvested its first farms, 7 years on from the start of the

project, with returns exceeding the initial expectations of the project back

in 2008.

The first wave of the project, opened to investors in 2008, has already

provided substantial returns from the sale of farm grown Christmas trees to

initial investors.

Local demand for GWD farm grown Christmas trees currently exceeds

available supply. GWD believes that the viability of the project has been

proven through past performance and expects future demand of farm

grown Christmas trees to remain strong for the foreseeable future. It is felt

that the investment will provide an assured alternative to other traditional

markets for investors looking to diversify.

Due to exceptionally high sales orders for our Christmas trees, GWD is

looking to further expand the project area in order to keep up with

expected future demand. As a result, GWD Forestry is now offering a

limited number of investors the opportunity to invest into the second

phase of the project, through a simple and effective direct ownership

investment structure.



2. ABOUT GWD

GWD Forestry is a multinational forestry / agroforestry company focused

on producing fast growing tree species able to show returns in less than 10

years.

The primary focus for investment is in the establishment of plantation

forestry which is more in line with agriculture than managed forestry as a

whole.

Originally incorporated in Copenhagen, Denmark in 2008, our business has

since developed over the years and is now established in over 21 countries.

GWD itself is asset backed, owning substantial forestry assets without liens

or mortgages in both North and South America and has quickly grown to

become a major forestry operator in the regions it has established itself in.

Comprising a team of forestry and agricultural professionals, legal

professionals and tax specialists, GWD aims to provide a niche forestry

service for investors like no other.

Working in conjunction with a prominent university in Europe, GWD also

has a dedicated research and development division based in Porto, Portugal

with the aim of bringing greater understanding to investors regarding its

existing and future projects. This strategic alliance also gives GWD access to

some of the most modern facilities in Europe for analyzing its projects,

allowing it to improve the way it operates in the field; developing new

techniques in order to optimize timber yields where possible.



3. THE INVESTMENT

GWD Forestry is offering clients the opportunity to invest directly into a

structure which establishes, develops and ultimately results in the sale of

Christmas tree forestry crops through a number of limited investments in

Plantation Units¹. The investment is simple in its structure, with the

investor retaining the full rights to the forestry asset until harvest; directly

owning crops grown on individually identified Plantation Units.

The investor may choose to invest into 3 different sized Plantation Units:

1 acre lots for an investment of €9,750



(Clients who prefer not to work in Euros may opt in for a US Dollar equivalent)

Clients may also choose to invest into multiple lots dependent on

availability.

Based on plantation practice, 1 acre of land will be planted with

approximately 1,742 Christmas trees. These trees will mature over the

years reaching saleable size. Once these trees are ready for market, they

will be harvested; driving returns for the investor from the sale of the

harvested tree crops.

Dividend payments will also be made to the investor at years 3 and 4 after

establishment. These dividend payments are generated from the sale of

tabletop Christmas trees. These smaller trees, ideal for decorating table

displays, are harvested from the weaker trees grown on site at years 3 and

4, in line with best management practice leaving the highest quality trees

for full commercial harvest starting at year 6 of the investment. In 2014

tabletop tree prices were €8.00 per tree at wholesale.

The investor will then receive further returns from the remaining fully

mature trees at years 6, 7, 8, and 9. It is reasonably expected that between

900 and 1,000 trees per acre will be harvested from year 6 onwards.

Depending on height, wholesale tree prices in 2014 ranged from €18.80 for

5-6ft trees upwards to €45.50 for trees of 9ft-10ft in height.

Returns can be paid to the investor by GWD New Brunswick Project Ltd. via

bank transfer, or by Cheque in Euros.

[¹] The definition of a Plantation Unit is simply a subdivided area of land, planted and/or to

be planted with a mix of Christmas tree crops; Fraser and Balsam fir varieties.



4. TRACK RECORD

In 2008, GWD New Brunswick purchased and developed 3 farm sites

located within the province of New Brunswick, Canada. The company has

since purchased additional sites and is positioning itself to acquire in excess

of 30% of the future supply of Christmas trees from the province of New

Brunswick, Canada.

Over the years, the company has invested substantial capital into the

development of these farm sites; transforming them into dedicated

Christmas tree farms.

In 2014, GWD started its first commercial harvest of trees produced from

GWD farm sites resulting in approximately 15,000 trees being harvested

and sold to retailers located within both Canada and the United States of

America.

With GWD harvesting its first crops in 2014, investors involved in Phase 1 of

the project have now received their first returns. These returns have so far

exceeded the initial financial projections.

5. REPORTING

GWD Forestry supplies all investors with a comprehensive report issued on,

or before, the 1st June each year.

Annual reporting will include details of year on year sales revenue

generated by GWD New Brunswick from Christmas trees sold, alongside

industry information and independent evaluations.

Reports will include detailed information regarding the values received for

the tree crops.

Investors will have 24 hour access to the GWD Canada mini-site located at

www.gwdcanada.com.

Investors also have unique access to their own dedicated area on the GWD

Forestry website located at http://www.gwdforestry.com/clientlogin and

will be assigned their own dedicated account manager.

http://www.gwdforestry.com/clientlogin



6. CURRENT DEMAND

Canada cuts up to 6 million trees annually; approximately 50% of these

trees are exported to the United States and other countries.

In 2014, GWD New Brunswick harvested and sold over 15,000 Christmas

trees.

It is expected that GWD will harvest and sell in excess of 17,000 Christmas

trees from our farms in 2015.

7. DEVELOPMENT POTENTIAL

Demand from wholesalers in 2014 far outweighed the available supply of

Christmas trees grown on GWD farms. The demand was so great that GWD

was forced to decline sales orders for in excess of 40,000 trees.

The average orders GWD were unable to fulfill were for trees ranging in

sizes from between 3ft to 8ft and the projected wholesale value for these

trees is estimated to be approximately €2.4 million over the next 3 years.

In addition to this existing demand from retailers, it is believed that

through online marketing, GWD will be able to attract further sales,

increasing the potential of returns on investment for investors.



8. TREE PRICES

Actual prices paid for Christmas tree crops harvested from GWD farms were

recorded. These prices are expected to be achieved, or exceeded, in the

future; rising in line with increased demand and inflation.

TREE PRICES PAID IN 2014 ARE–

• 3-4ft = €8.00 per tabletop tree

• 5-6ft = €18.80 per tree

• 6-7ft = €23.25 per tree

• 7-8ft = €27.50 per tree

• 8-9ft = €33.75 per tree

• 9-10ft = €45.50 per tree



9. HARVEST NOTIFICATION

Prior to harvest, the investor will be notified as to the exact number of

individually flagged trees that are ready to be included in that year’s

harvest. This will occur in the fourth quarter annually, just prior to that

year’s seasonal harvest.

Flagging will involve GWD New Brunswick individually tagging trees with

color coded labels that identify the trees that are ready for harvest by

height and grade.

GWD New Brunswick Project Ltd. will then contractually agree the price

that will be paid to the investor for the individually flagged trees, priced

accordingly by height and grade.

Upon investor approval, GWD New Brunswick will make payment directly

to the investor as per the Payment Schedule.

10. PAYMENT SCHEDULE

After notification, investors can choose to receive their returns either by

cheque in Euros or by wire transfer. Payments will be made directly from

GWD New Brunswick Project Ltd. by the 1st June each year following

harvest at approximately –

Year 3 - Dividend payment through the sale of tabletop Christmas trees

Year 4 - Dividend payment through the sale of tabletop Christmas trees

Year 6 - First commercial harvest of available saleable trees

Years 7 & 8 - Second & third majority harvest of saleable trees

Year 9 - Final harvest of any remaining saleable Christmas trees



11. AN INVESTMENT WITH REAL VALUE

Due to the investment structure, investors will retain all rights to the

physical asset. This means that the investor will have control of that asset

at all times, until delivery of all contractual obligations held under

agreement between the investor and GWD New Brunswick Project Ltd.

have been fulfilled.

12. RETURNS

Whilst returns from the project are estimated to be between 9% - 16% per

annum, these rates are considered to be conservative. Previous projected

rates have so far been exceeded.

For illustration purposes, GWD assumes the following, based on 1 acre of land established with 1,742 trees

based on average prices where 2 values are shown:

[¹] At Years 3 & 4 - 842 tabletop trees will be extracted and sold at €8.00 per tree. 50% will be extracted at

Year 3 and then 50% extracted at Year 4.

[²] At Year 6 - 125 trees between 5-6ft will be extracted and sold at €18.80

[³] At Year 7 - 325 trees between 6-7ft will be extracted and sold at €23.25

[⁴] At Year 8 - 325 trees between 7-9ft will be extracted and sold at €27.50-€33.75

[⁵] At Year 9 - 125 trees between 8-10ft will be extracted and sold at €33.75-€45.50

The table below shows a return projection based on actual prices received for Christmas trees in 2014:

INITIAL INVESTMENT

€

UNIT SIZE

YEAR 3 [¹]

YEAR 4 [¹]

YEAR 5

YEAR 6 [²]

YEAR 7 [³]

YEAR 8 [⁴]

YEAR 9 [⁵]

TOTAL €

(Annualized) ROI

9,750 1 Acre 3,368 3,368 N/A 2,350 7,556.25 9,954.75 4,953.75 31,550.75 14.2%

19,250 2 Acres 6,736 6,736 N/A 4,700 15,112.50 19,909.50 9,907.50 63,101.15 14.3%

38,000 4 Acres 13,472 13,472 N/A 9,400 30,225 39,819 19,815 126,203 14.4%

A Performance Fee of 10% will apply to all revenue received by the investor.



13. HOW TO INVEST

Speak to your account manager and decide the investment level suitable for you.

If you don´t already have an account with us then please email us at

[email protected] and we will contact you as soon as possible.

Once you have decided on the investment that suits you, we require a €50.00

administration fee to secure the investment, paid either by credit or debit card.

Upon receipt of the administration fee, we will send to you by post a two part

agreement that will need to be signed. One copy is returned to us with payment

and the other copy is retained for your records.

We will then send you the Ownership Certificate along with your starter pack.

Once you have received your starter pack, should you have any queries or

comments, please contact your dedicated account manager who will be happy to

assist you further.

GWD Forestry S.L. Calle Catalunya 5, 1A-B Palma de Mallorca 07011 Balearic Islands +34 971 221 156 [email protected]



Christmas Tree Investments Brochure 2015 Euro -V1.0

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Transcript of Christmas Tree Investments Brochure 2015 Euro -V1.0