On behalf of Bluesource Sustainable Forests Company (BSFC), LandVest is pleased to announce the offering of Teak Timberlands. The Teak Timberlands project is a collection of investment-grade timberlands in east-central Panama totaling 1,064± hectares.
This portfolio offering features 800± hectares of high-quality, established teak (Tectona grandis) plantations situated on some of the most productive sites in Panama. The offering is comprised of three unique tree farms: Chepo River (Catella), Canglon, and Quebrada Honda. All the farms have seen significant investment in the past decade in infrastructure, reforestation, and silvicultural care. As a result, Teak Timberlands offers investors a desirable mix of accessible stands and age classes poised to provide reliable returns for the foreseeable future.
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Chepo River Farm: The Chepo River tracts are located approximately 70km east of Panama City and the Tocumen International Airport. The tracts are situated on both sides of the Pan American Highway and offer excellent access to the highway and international markets. Chepo River totals 707± hectares, of which 558± hectares are established teak plantations. Prior to the establishment of teak plantations in the mid-1990s, the property was mixed use grazing and subsistence farms. Those early plantations utilized early-generation Costa Rican seed stock, and nearly all have had a final harvest. The second-generation plantations were established using the latest Malaysian and Costa Rican clonal varieties ideally suited for the site. The use of these clones, combined with the silvicultural care they received since establishment, make the Chepo River tracts a valuable teak resource located very near the international hub of Panama City.
Canglon and Quebreda Honda Farms: Collectively, the Canglon and Quebrada Honda tracts are locally known as the 'Greenfield' property. The Greenfield property is 357± hectares and contains 272± hectares of established teak plantations on 10 tracts. All the tracts are located on what are widely believed to be the most productive teak sites in Panama. Prior to 2015, the entirety of the Greenfield property was grazing lands except for 14 hectares of scattered teak plantings and seed orchards. All the plantations were established in 2015 or 2016 and feature the best clonal varieties and genetics available at the time. Since establishment, the teak plantations on the Greenfield property have received considerable silvicultural care and now represent the highest quality and most productive plantations in the region.
Panama offers an incredible opportunity for the international timberland investor. With continued investment and expansion of the Panama Canal, Panama is truly at the crossroads of North and South American commerce. As a result, the well-established teak trade in Panama has unprecedented access to global markets. Panama also offers the timberland investor very favorable tax incentives and a currency tied directly to the United States dollar. With an annual GDP of $63 billion USD, the teak trade in Panama is poised for growth with a stable government, access to a reliable labor force, and entrepreneurs looking to grow the value-added secondary manufacturing of teak products.
To receive an information package and register for the data room, please return a signed copy of the confidentiality agreement which you can access from the link below.
