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Ecoforests: Timberland Investment Capital Flows Into Latin American

Submitted by: Ecoforests

Categories: Socially Responsible Investing, Corporate Social Responsibility

Posted: Dec 14, 2007 – 05:44 PM EST


Timberland Investing Summit at the Westin New York

Dec. 14 /CSRwire/ - TORONTO, ONTARIO -- (MARKET WIRE) -- 12/14/07 -- Ecoforests (Corporacion Ecologica y Bosques Tropicales S.A.) was present at the Timberland Investing World Summit in New York this past month.

Ecoforests had been invited by the organizers to expose our expertise on Timberland projects in Latin America and identify the attractiveness of this asset class for institutional and private investors.

Delegates to this symposium who shared their positive perception of investing in Latin America include: Mr. Steve Gretzinger-WWF Global Forest & Trade Network, Klas Sander- SDN Forest Team - The World Bank, and Jose Rente Nascimento - Inter American Development Bank.

For many decades investment in Timber in the United States has been the success of many institutional asset management groups. Close to $15 Billion had been invested up until 1998 and up to $50 Billion ending in 2007. Another $5-$10 Billion is projected to be invested by 2010.

It is clear that the real returns and risk have made timberland a preferred asset for many international conglomerates to diversify their portfolio and also as an inflation hedge, however the safe haven of United States has reached its peak , commercial parcels of land in the US are in near completion and a negative downturn in the housing market has made a squeeze in past performance of US investments.

For many years the attractiveness of Latin American forestry has been present, for many has been successful, and in 2008 investment wealth of a few billion is to be injected into the Latin American sustainable forestry operations.

In the conference it was acknowledged that Latin America with Tropical and Sub-Tropical climates offers the best possible environment for forest plantations, humid climates and a vast rainy season offers the fastest forestry growth rates, 2-3 times faster than projects in the Northern Hemisphere. In addition the implementation of CDM (clean development mechanisms) projects allows for additional profits based on the trading of carbon credits.

The attractiveness that is urging investors to invest in Latin America is not only based on the climate, the labour costs are lower, some governments such as Argentina and Costa Rica have a forestry incentives that allow a Tax-Free investment. In addition the World Bank and the Inter American Development bank have developed models and programs for Latin America in order to assure Forest Law enforcement and Governance. I.E. PROMECIF is a process to improve the forestry investment climate in Latin America by way of adjudicating agricultural policies, planting and harvesting norms and favourable support to governments which turns into added security for your investment capital.

Ecoforests develops high-quality timber for export markets, therefore our returns are not directly correlated to internal market conditions in Latin America.

Ecoforests is a vertically integrated Sustainable Forestry management company that currently mandates the management of plantations in Latin America, mainly in Costa Rica and Argentina our representations offices are situated in Madrid, Alicante, Toronto, Sweden and Portugal. We offer turn-key forestry projects with certified seedlings, nursery, plantations and finished timber. For our '07 business operations we are happy to report that we have successfully ventured with various private and institutional investors and expanded our operations. For our management projections for 2008 we expect to close under management circa to EUR 150 - EUR 200 Million from new international institutions and Banks that have expressed strong interest in partnering with a knowledgeable Latin American forest management group for their already committed investment capital.

Our expertise in the region dates back to over 40 years of experience, and we can conclude that the interest for investments in Latin American forestry is present, the demand is growing and we offer the opportunity to participate as an institution or as a individual investor under a tree partner model that best suits your need.

If you wish to learn more of what Ecoforests can do for you, please contact us at +1-416-762-2803 or +34-902-367-313.

For more information, please contact:

Michael Ackerman Ecoforests
Phone: (647) 435-4283


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