EcoPlanet Bamboo Investment Offer
This "investment opportunity" is sold quite heavily over the phone and the internet. I wanted to know if you have any comments on this model (everything looks not so good but the forecast returns, however in my experience that is usually where "something happens" and in the end you actually never see them).
They are asking an outrageous original investment of $55K for a hectare located in Nicaragua and a lease limited to 15 years. The plots are supposedly 2 years old already.
In 2016 (year 5) they forecast a first payment of $3,827 and from then on annual payments of $33K (minus a hefty $12K in fees for a net return of $20,845). For every year until 2027 they forecast the same $33K payment but their fee keeps rising, so that in the final year your % has arrived at $17,252 (I have applied their base case numbers based on $1.35 per linear meter). Still, who wouldn't like such returns for 11 years (returning almost 400% of your investment)?
My question is, what are your comments on this?
I would be very uncomfortable with this if I understand the concept. If the fields are already 2 years old that means the expense of planting has already taken place. Why would they then want to sell it? I know that there is still the expense of reaping but I'm sure processing plants would fork out that money if the owner would enter into a contract with the processing plant whereby they would have to supply them in order to get the reaping expenses money up front. It sounds to good to be true.
I have been involved with Bamboo many years now. I'm amazed of what EcoPlanet is saying or even offering!
People, PLEASE investigate before gifting your hard earning pennies!
Thank you Guadua Bamboo for providing the only real and tangible information available.
Stephane from Guadua Bamboo replied:
You might find this article enlightening: The bamboo boom that went bust for investors. Featuring EcoPlanet Bamboo