Republic of Panama; Teak Plantation for Sale
PLANTATION SIZE: Eight year old teak trees on 80 hectares (197.6 acres) of prime plantation and water front property.
THE LAND: The soils have been carefully selected, have an adequate depth for Teak's correct growth, are fertile and have good drainage. The topography is gentle rolling hills with a maximum height of 50 meters above sea level and 40 meters above the lake. The hills increase the properties surface area to the equivalent of 105 hectares. Lake Gatun borders one side of the plantation touching on our four peninsulas and five coves with over 4 km lake frontage. A paved road the other, it also has live springs and many scenic locations.
| THE GENERAL PLANTATION AREA: The plantation areas have internal road networks with 1.2 kilometers paved roads that allow access to the plantation. These roads allow the settlement, the maintenance, mechanization and the extraction of the wood. The property has electrical power; fresh well water all year. |
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LOCATION: The 80
hectare plantation is well developed and well maintained with good access
on paved roads. This property has approximately 2000 meters of water frontage
on Lake Gatun. This beautiful property is located in the province of Colon,
situated between the towns of Escobal and Cuipo, which lie north of Panama
City. The property is about a 90 minute drive from Panama City and 30 minutes
from Colon, on a paved road.
There are two luxury resorts nearby on Lake Gatun, The
Gamboa Rainforest Resort and the Melia Panama Canal Resort
| SECURITY: This private eighty hectare plantation is protected by a resident foreman whom lives in a house on the property with his family. |
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MAINTENANCE: For the past seven years the plantation has been professionally maintained and is in the process of it's scheduled pruning and thinning.
| QUALITY OF THE TEAK TREES: Well maintained in a fashion to produce high quality veneer or saw logs similar in quality to that of Burma teak of that age. Special care has been taken with the forest management. |
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PROJECTED RETURN ON INVESTMENT:
The marketable harvest of the plantation is scheduled to start when the teak
trees are 16 and then again at age 20 years old. This harvest will begin 7
years from now and continue until the year 2016. Knowing the current size
of the trees and their current measured growth rate we can reliably calculate
the size of the teak trees in nine years and thus the total volume of marketable
teak logs that can be harvested at that time and the log sizes that will be
harvested through out the entire mature cycle. It is calculated that approximately
28,000 cubic meters of marketable teak can be harvested from the teak trees
on this 80 hectare property. The harvested trees will be 16 years old at the
intermediate harvest and 20 years old final harvest. Chart
of teak yields per hectare.
The current FOB price for high grade teak logs 35cm+ is approximately US$330 per cubic meter. Thus, assuming that the price of teak does not increase over the next 7 to 12 years, the harvest from age 16 and 18 should yield a potential total of US$9,240,000 (nine million +). If on the other hand we assume that the current annual increase of only 4% in the price of teak continues, then the harvest will yield a potential gross profit of over US$14,000,000 (fourteen million). There is much more profit to be made if you saw the logs into lumber.
After the harvest is completed the owner of course still has the ownership of prime lake front real estate, which he may sell or use for any purpose he wishes. This property is located in the province of Colon between the towns of Escobal and Cuipo on the shores of the lake Gatun. With more than two kilometers of lake front property in an area slated for development the Lake Gatun property should be considered an excellent real estate investment also. Lake Gatun is the main source of water for the Panama Canal and also the largest artificial lake in the Americas. This property is a prime location for a retirement village, hotel or resort considering that it is one hour and thirty minutes from Panama City and only 30 minutes from Colon City.
Asking Price: US$1,500,000.00 (one and a half million) equivalent to $18,750 per reforested hectare.
Bank financing may be available.
Incentives to investors in reforestation:
1. The investment is tax deductible.
2. Tax exemption on all the following taxes: Capital Gains, Income, Property,
transfer, dividend and sales.
3. All equipment that is needed, can be imported free of tax.
4. Exports to the US are tax exempt in the US.
5. The right to residency with a $40 K investment.
Characteristics of the general Cuipo area:
Cuipo is a small town in the Colon province on the shores of the Gatun Lake:
· Lake Gatun is the main source of water for the Panama Canal and second
largest artificial lake in the world.
· The surrounding areas have abundant presteen forest full of flora
and fauna. It common to see howler monkeys, toucans and wild ducks, from your
car, on the way to the property.
· The population is about 2,500 inhabitants.
· The main commercial activities is Cattle farming 70% and subsistence
Agriculture 30%.
· There are 2 very rustic restaurants.
· There are no Hoteles.
· 1 General store and 3 mom an pop stores.
· The annual level of rain fall is about 2200mm.
· There is a 3 month dry season, from mid January to mid April, and
an 9 month rainy season from mid April to mid January.
· Cuipo is a 2.5 hour drive from Panama City on paved road and I hour
from Colon city and 45 minutes by boat from Gamboa public pear.
Other Water Front Properties Available
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