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Investments Highlights

18%

Target IRR

$ 2,500

Min Investment

18.0%

Pref Return

5 years

Hold Period

$ 1,500,000

Target Raise

$ 2,000,000

Total Value

Reforestation

Asset Class

Preferred Equity

Investment Type



Executive Summary

The Philippines Reforestation Project is part of ENDVEST's Social Impact initiative.

Invest in a great economic and humanitarian project that will improve the lives of many natives in the Philippines by helping them transform their ancestral lands to a productive and sustainable enterprise. You will earn a very impressive fixed rate of return of 18% per year on your investment dollars which will be used to purchase state of the art equipment, vehicles and technology to efficiently change harvest and replant the timber and bamboo that has overgrown on these lands.


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Location

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About the Investment

The 800 hectare (about 2,000 acres) reforestation effort in the Philippines will create dozens of jobs for local villagers, while meeting an increasing demand for timber and bamboo in Southeast Asia. A rare, tri-party strategic alliance between various cooperatives of native and indigenous peoples on the island of Negros (2) an agency the Philippine Government and (3) Pan Pacific AgroTech (PPAT), the sponsor of the project, will provide for respectful and sustainable harvesting and replanting of the mature timberland that was originally planted with the help of the government for this exact purpose over 20 years ago. The expected cash flows are projected to yield an 18.0% cash on cash return to the investors in this project. 

The project is certain to provide long-awaited financial support to the natives of this naturally-resourceful country of exquisite islands.  These forests were planted with governmental support over the past 20 years with the intent to have the native tribes and cooperatives to harvest the trees for their economic survival.  But these natives do not have the financial or technical resources to harvest and replant the trees. ENDVEST Partners fund will be used to put the natives to work in the reforestation of their ancestral lands, providing vital income to feed their families, wood to manufacture furniture and flooring for world markets and to open the dormant lands to replanting of new trees that will support future generations.  Additionally, for every tree harvested, three will be planted, making this project one of the worlds most impactful reforestation projects. 

Deal Highlights:

  • Leveraged relationship with Philippine Government
    • The sponsor has been able to secure a long term land lease and obtain permits to cultivate the land in an effort of reforestation as well as planting in current undeveloped land with new fruit trees, neem trees and other sustainable crops. This relationship opens up a significant barrier, yielding high returns and shields PPAT from competition and limiting downside risk.
  • Meeting Local Market Demand for Timber
    • Southeast Asia has experienced a demand growth for timber and bamboo of at least 20% compound annual growth rate (CAGR) since 1980. The impending demand in the coming years is supported by population growth and aging population in Philippines, Indonesia China, Japan, and S. Korea. These demographic factors have led to increasing demand for housing, furniture and higher value hardwood flooring for home renovations.
  • Sustainable & Environmentally Friendly
    • Three (3) new trees will be replanted for each tree harvested thus assuring continued environmental benefits including carbon sequestration. As for the bamboo plant, cultivation spurs further growth that is harvestable each year as a sustainable and renewable source.

Investment Description

Capital Stack

Sponsor 500,000
ENDVEST 1,500,000
Total $ 2,000,000

Investment Details

Asset Class Agriculture
Property Size 800 Hectares (2,000 Acres)
Current Status Cash Flowing
Opportunity Opportunistic


Investor Information

By investing in Reforestation in the Philippines, you are investing in a senior loan. This loan will be interest only at 18% for a five year term. The high interest rate is a result of the risk premium that exists with off-shore investments in indigenous markets.

Should the sponsor be unable to repay the principal or interest on the loan throughout the investment period and default, you as the lender will have first position title to the underlying assets.

The following diagram illustrates the ownership of the Company and the Project Entity:

 

EnDvest Partners 12, LLC, a Delaware limited liability company (the “Company”), was formed to acquire an interest in 1200 4th, LLC, which we refer to as the “Project Entity.” The Project Entity was in turn formed to acquire, renovate, and lease, release, redevelop or sell the property located at 1200 4th Street, San Diego, California , which we refer to as the “Project” and is described at ENDVEST (the “Site”).

You arrived at this page by selecting the Project at the Site and then selecting “Investor Information.” The Company is offering to sell limited liability company interests to qualified investors. We refer to the interests purchased as the “LLC Interests” and to the investors themselves as “Investors.”

This Investor Information section of the Site is intended to provide you with important information about the Company, the Project Entity, the Project, and the LLC Interests. You should read all of the sections carefully. If you have questions or need more information, please contact us at [email protected].

Click here to download the complete Disclosure Package for 1200 4th Avenue.

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