Introduction

· This is a forestry and land based investment in Estonia, which has recently joined the European Union (May 2004). Property ownership rights by foreign individuals and companies are enshrined in law and the legal system has received international recognition for its transparency.
· The purchase price is €11.9 million (excluding legal and professional costs) which represents an average cost per hectare of €1,942 (€786 per hectare). These prices are at a considerable discount to forestry and agricultural land throughout the rest of Europe. Land and forestry values are increasing between 15% and 20% per annum.
· Forestry Services Ltd. have taking an equity investment of €6.75 million in the fund at the same price and with the same conditions as all other investors, highlighting the promoters confidence in the project, apart from managing the investment on behalf of investors.
· International rankings by the Heritage Organisation and the Wall Street Journal rank Estonia as the 12th freest economy in the world and the 7th freest economy in Europe. (Ireland 7th and 2nd respectively).
· The promoters are a team of highly qualified individuals, made up of three professional Foresters and a Chartered Accountant. The promoters have employed the services of the oldest and largest private forestry management company to assist in

The Investment

· The existing estate of 6,130 hectares (15,141 acres) was purchased in June 2007. This estate is made up of Forestry 5,268 Hectares (13,011 Acres) and Agricultural land 862 Hectares (2,310 Acres).
· Additional purchases of 3,000 Hectares have been acquired in December 2007.
· The Estate is broken down into 196 different holdings of an average size 31 Hectares (76.5 Acres). The holdings are spread throughout the whole of Estonia.
· The minimum investment was €500,000 – which entitles the shareholder to one share in the investment. The fund size is 20 million.
· A dividend of 3% (€15,000) is projected to be paid on an annual basis to each investor. This repayment should be tax free to all investors.
· Projected returns on sale of 15-20% per annum are forecast on sale of the properties in 5 years time. This is based on, increasing worldwide demand for timber, increasing world population, increasing use of renewable fuels as laid down in the Kyoto Protocol and the EU White Paper on Renewable Energy all whilst available forest recourses are decreasing.
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