EE-01 Mixed Boreal Forest
This forest is now fully funded! We have chosen a small, 9 hectare plot near the village of Kõiguste in Saare County, Estonia. 8 hectares are dedicated to the forest, which currently consists of Pine, Birch, Aspen and White Alder.
This forest is a strong example of a mixed boreal forest common to the Baltic region, which have been sustainably managed for generations. Its structure and makeup closely resemble old growth forests in the region, and thus provides for natural resilience to storms and pests.
There is still a persistent price gap for woodland between the Baltics and neighbouring Scandinavia, leaving significant room for additional land price appreciation.
This results in a lower production cost for wood in Estonia, whilst taking advantage of stable demand and higher wood prices in nearby mature markets.
This forest is projected to be income producing in its first year, with an additional harvest estimated at year 9. You can refer to the 15 year cashflow projection chart shown below.
Please note that this chart does not include the value of the underlying land, which will also appreciate over time, and will increase your overall exit value, should you choose to trade your tokens.
Further, please also note that should wood prices be lower than expected at the projected time of harvest, we'll have the option of not performing the harvest, and deferring it until wood prices are more favourable. This is one of the greatest advantages of generating income from woodland.
Along with strong GDP growth, technologically advanced and modern infrastructure as well as stable political systems in Estonia, this forest represents an undervalued and excellent investment opportunity that is well positioned for sustained growth in the coming years.
This forest is an FSC® certified forest, with licence code FSC-C135147.
You can search for the forest on the Estonian Land Registry here.
- Enter 38601:004:0152 into the field for "Katastritunnus", or Cadastrial Code; or
- Enter 6233350 into the field for "Uus kinnistu nr", or Property Registration Number
- You should then be given a link to a map showing where the forest actually is, on a map. Direct link is here.
Invest now to avoid disappointment. Tokens will be distributed when the forest is fully funded.
15 Year Cash Flow Projection
Forest land prices in Euros per hectare (including timber)
|Forest type||Semi natural boreal forest|
|Total area||9 ha|
|Forest area||8 ha|
|Non Forest Area||1 ha|
|Non Forest Area||1 ha|
|Forest tree species||Aspen, Pine, Birch, White Alder|
|Price per ha (incl standing wood value)||€ 2,965|
|Projected annual timber growth||2.75 m³ / ha|
|Projected average annual timber income||4.48%|
|Projected annual return expectations (includes land price appreciation)||4-6% IRR|
|Country risk premium||+1.4% ?|
|End products||Construction wood, biomass pellets, wood chips, furniture, paper, pallets|
|Expected rotation age||20-40 years|
|Risks||In Estonia, on average less than 0.1% of trees had to be felled due to damage by wind, water, fire, diseases and animal damage.|
|Certifications||FSC® certified forest. Licence code: FSC-C135147|
|Forest Purchase Value||€25,000|
|Total To Fund||€26,688|