The forest share > What to look out for?

The forest share – for a future worth living.

To create a future worth living, it takes more than just charity and pollution control. This has never been as clear as today. Only when economic activity becomes inseparable from environmentalist thinking and socially responsible acting, a sustainable change can be achieved. With the “Forrest-Share”, which treats both humans and the environment responsibly, we want to actualize exactly that: by molding an ecosystem, meaningful investments can change the world.

Is all that glitters really gold?

What you should consider to before investing money in a forestry project.

Adventurous sounding rates of return, utopian conditions, carefree people. Promises like this are omnipresent in the field of sustainable forestry project investments. Reality, however, looks different. How to navigate this jungle of information as a prospect? Our recommendation: Comparing is key. Having the right questions in mind will help you find a sustainable path.

The key aspects:

Land Plots: Owning or Leasing

Many companies do afforest on land plots they only have a lease on until the point of harvest. This procedure is subject to risks. This is due to the fact that the piece of land is merely secured for an indeterminate amount of time – which means the proprietor may sell the property at any given point in time. Both your investment and the afforestation project are endangered by this.

At BaumInvest:
The properties we afforest have been bought by us. This not only ensures a long-term protection of the land, but it furthermore makes the estate itself an asset you invest in. You will own the high-quality tropical woods we plant, as well as the land it grows on.

Current law

Depending on the provider, different laws may apply to the companies involved in the project. In many cases, companies do not fall under German jurisdiction, but the law of the country they invest in. Solving legal and contractual issues that might appear along the way can become very difficult.

At BaumInvest:
You invest in a German stock company under German jurisdiction.

Monoculture or mixed forests?

Our mixed forests are composed in a way that makes various kinds of trees support each other in their development and growth. This assembly mirrors the way a wild forest grows. And there is more: Companies advertising for mixed forests should actually plant them in the here and now – and not just make promises about the far future.

At BaumInvest:
We have conceptualized over 40 different combinations, consisting of 17 kinds of trees, which are used to match the individual conditions of each piece of land we own. Based on our experience doing this, BaumInvest has the know-how to afforest every site with perfectly fitting flora. While conceptualizing these mixed forests, we heavily focus on utilizing trees native to the area. These can be cultivated over extraordinary amounts of time while attracting and supporting a great variety of wildlife.

Increase of biodiversity

Biodiversity – the settlement or conservation of as many different animal and plant species as possible – is only possible at landmarks offering the right environmental preconditions: in a mixed forest without clearcutting. Ideally even with additional protected areas.

At BaumInvest:
There are three factors which play a key role when trying to protect biodiversity. 1. Our fincas border national conservation areas, such as the famous Braulio Carillo park. 2. Across all our plots, 25% of the total area is being utilized as nature reserves. 3. The mixed forests we plant provide permanent living space for many animals and plants.

Risk Management

A rule of thumb: The bigger the plantation, the bigger the risk. This is mostly due to the proneness to damages inflicted by pests, wildfires and storms. Afforesting several smaller and spatially disconnected properties allows for more safety and smaller individual risks. Furthermore, it is easier to integrate smaller plots into the already existing structure, which allows for villages and social life to subsist. Companies working with gigantic plantations frequently invest in exotic monocultures, which are prone to damages. Be mindful of diversity and native species in order to reduce the risk of a failure.

At BaumInvest:
Our plots are distributed all across northern Costa Rica and form four major plantation areas. Within these four areas, our fincas are spread in a way that allows for them to be embedded in local preconditions. Additionally, this disconnection offers a high level of protection from environmental damages. Focusing on native species and mixed forests constitutes an important contribution to our risk management.

Experience

For how long has the provider’s concept been in the market? Which competences is it based on? And how strongly are science and research involved? A concept that is supposed to produce value – whether it is ecological, economic or social – requires the successful cooperation of several disciplines. And it requires years of experience – in close dialogue with the environment.

At BaumInvest:
We have been collecting experiences in relation to our planting concepts focused on mixed forests since 2007. In fact, BaumInvest had to live through a very educational period of testing and evaluating a great number of planting concepts in constant collaboration with the University of Costa Rica, the University of Freiburg and research done by the foundation FuturoVerde.

Integrity

The German Federal Financial Supervisory Authority (BaFin) urges companies to publicly share relevant information on their projects in a so called “BaFin-Prospekt” (BaFin-Brochure). As a future investor, it is of utter importance to demand such a brochure before participating.

At BaumInvest:
We follow the law and existing regulations and are more than happy to provide you with a BaFin-Brochure when increasing our capital stock.

Location

The list of states that are not considered stable and reliable is long. The importance of investing in a country which is politically stable and offers a functioning jurisdiction cannot be overestimated when assessing the land registry security of a project.

At BaumInvest:
Costa Rica is considered a stable country. The foreign office expresses this thought by saying that it is a democratic, presidential republic, which abolished their own military in 1949. Within the region of Central America, Costa Rika is considered a stabilizing factor.

To the website of the German Foreign Office

Codetermination

It is always nice to be part in a stock company’s decision-making.

At BaumInvest:
BaumInvest is considered a stock company, which grants its investors a great deal of voice opportunities. The supervisory committee, which consist of investors elected by investors, constantly overlooks and controls the business conducts of BaumInvest. Additionally, every investor has the chance to incorporate his or her abilities in various focus groups.

Transparency

The provider should be an open book to you. That means: the what-where-how of everything the respective company does should be transparent and verifiable. Is there trustworthy pictures or videos? Am I being informed properly and frequently? Can I perhaps even go there and see the work for myself? Every provider should be able to answer these questions with an immediate “YES!”

At BaumInvest:
As an investor, you will have the opportunity to visit our fincas in Costa Rica. We supply our shareholders with detailed information, by providing our investors with a constant flow of new information on the project, our annual busines report and periodic shareholder meetings.