Latest News
posted on 1 Dec, 2011
Teak Plantation in Panama
GFA´s Forest Investment Unit recently supported a German institutional investor in the acquisition of a teak plantation in Panama. Through active deal sourcing in the region, GFA identified the plantation as attractive investment opportunity in line with client-specific targets. The project represents a double-digit million Euro investment.
The acquisition was preceded by a full due diligence on the project. As part of the due diligence process, GFA experts evaluated existing inventory data, developed a site-specific growth & yield model, and analyzed relevant timber markets. In addition, GFA conducted a comprehensive risk analysis and provided recommendations for the set-up of local forest management operations. The evaluation also included an appraisal of all costs and revenues, and the design of a discounted cash-flow model to calculate the project’s net present value and future profitability.
The plantation comprises several hundred hectares of teak stands which are three to fifteen years old and will be managed sustainably and profitably for the continuous production of high-quality teak timber. After completion of the transaction process in mid-November, GFA remains responsible for forest management planning as well as controlling and reporting to the client, including the frequent revaluation of the investment.
GFA provides an extensive range of both consultancy and management services with regard to all aspects of forest investments. Its Forest Investment Unit continuously develops the company’s project pipeline, and plans to expand in Panama as well as in other countries through further acquisitions of timber plantations and forests.
