In these times of continued economic difficulty, savvy investors are looking towards alternative investments more than ever. One of these alternatives is investing in timber, an asset class found all over the world. One location is Costa Rica and within it, access to the highly sought after form of timber – Melina (Gmelinaabrorea). Organisations such as Avacade Investments have been working in Costa Rica with Melina for many years and its Avacade Reviews offering underlines the returns on offer from this hardy timber. So why Melina?
Melina is a high-density form of timber, even more so than Oak and because of this, is used extensively in construction and for furniture. The tree is creamy white in colour and its neutral and clean appearance makes it the number one choice for the food packaging industry. It is also a very fast growing wood. In just eight months, a Melina tree grows to over eight feet and by two years old, the average tree is 20 feet high. The trees mature between 12 and 15 years old, at which point Melina trees are on average, over 95 feet high. It is this fast growth that makes it an attractive investment option.
Costa Rica is a particularly attractive destination for Melina. It has annual exports at over $11 billion, with the majority coming from the exportation of fruit, making Melina an extremely desirable material. Costa Rica not only creates ever-present and rising demand, but is also the perfect climate for the trees to flourish. Costa Rica also attracts investors looking not just to access a successful commodity such as Melina, but also those with green aspirations. The nation hopes to be the first carbon-free economy on the planet by 2021 and is already a leading light in renewable energy sources. Furthermore, it is one of the most bio-diverse regions in the world, has around a fifth of its total landmass in protected national parks and forbids the felling of native trees.
Avacade Investments understands that the speed in which Melina grows makes it an attractive option to the short and medium term investor. With returns paid at years four, eight and 10 after the timber is thinned and the final repayment at year 12, investors can expect a sum of around £100,000 from a £28,00 investment.
Avacade Investments 