A Dublin-based investment group has created a teak fund backed by former Coillte executives.
The Tropical High-Grade Hardwood (Teak) Fund has been established by Irish teak plantation investment adviser Tectona G Capital. Two of the fund’s directors, John Gilliland and Raymond Keogh, were with Coillte, associated with consulting and teak plantation development.
The fund has projected returns of 11% over seven years with the aim of raising €100m.
“Irresponsible deforestation in recent decades has led to a pending crisis in the availability of natural hardwoods and an urgent need for a fresh supply,” said fund chairman Denis Curran.
“Because teak is one of the few tropical hardwood species that can provide acceptable growth rates and can be managed in the form of plantations, it is the ideal species to increase hardwood supply.”
