ANSWERS TO FREQUENTLY ASKED QUESTIONS

1. Given that the IRR are the same, is it more advisable to invest in forestation as opposed to a depositing the same money in a secure bank? Why?

Even in the case in which the interest rate of a deposit were equal to the IRR (Internal Rate of Return), a forest investment is advisable because the cash flow generated each year through the IRR is the same, but the final return on the investment is radically different.

If you invest $100 at 14% annually at a good bank, you will obtain $14 per year over the period of investment. But at the expiry you will receive the original nominal value deposited, or $100, that will have decreased in value corresponding with American inflation for that period. On the other hand, if you invest the same $100 in tree farms, the land itself acts as a kind of compensatory good which will be at market value, and won't have suffered any deterioration in value due to inflation. In economic terms, it's difficult to imagine that within 10 to 15 years, land which is technically impossible to improve will be worth the same or less than today.

2. What other investments are comparable to forest investment?

Any investment in which the investor has the right to and the usufruct of the good. The clearest example is a property that one can rent, although the differences in favor of forest investment are enormous: it is transferable at any moment without the requirement of a deed, it cannot be seized (as outlined in lays pertaining to trust accounts), and furthermore, it offers a rent that, with time, will be four times more than the rent of a building or property.

3. What kind of investor profits most from forest investments?

Technically this is a long-term moderate-risk investment with high returns. Because of the nature of the cash flow, these investments are designed particularly for conservative investors between the ages of 30 and 60. Other ideal investors outside this age range are those who wish to secure savings for children and grandchildren that can be depended upon in the future.

4. If I decide to participate, am I the owner of the land?

Absolutely. You are the trust owner either directly through the trust account or through titles that represent this actuality (the real right to the property).

The property will be in the name of the trust account, in this case the BAPRO Group (the second most important financial institution in Argentina) who guarantees the property title of the tree farm in which you have a certain amount of stock.

When you decide to acquire stock in the tree farm, you complete the necessary forms and application processes in the BAPRO Group's offices alongside company notaries who will assign whomever you choose as the trustee to the trust account.

5. What role does the BAPRO Group play?

The BAPRO Group is the institution that keeps watch over the security of your investment. It audits and controls all the maintenance work of the tree farm and makes sure that said work is done correctly and at the right time. Most importantly, it guarantees that the liquidation of your investment is carried out at the time of tree felling.

6. How do I acquire stock in a tree farm?

By signing the relevant contracts and by depositing 30% of the investment to be made. Then, in the offices of BAPRO Group, you register your stock in the tree farm as the beneficiary of the trust account and the remaining 70% of the initial investment.

The minimal required amount to start investing with us is USD 15,000.

7. Can I sell my stocks at any time?

Yes, your stocks can be transfered easily, safely, and at a low cost at any time.

8. What about the risk of fire?

We mitigate the risk of a possible fire through the Consortium of Fire Management (Consorcio de manejo del fuego). This organization of area producers has put together coordinated efforts and resources for the last ten years, with the objective of keeping watch over, preventing, and fighting the possibility of a fire, based on a security system that is permanently monitored. In the case of fire, the land wouldn't lose its value and the roots of the affected trees would properly rebound in 6 years.

9. How do you go about marketing the existing wood? Are there currently enough buyers?

The forestry market in Argentina is divided into small, medium and large sawmills. The wood prices are easily accessible and are updated in trimestral publications distributed by the Secretaría de Agricultura Ganadería, Pesca y Alimentos of Argentina: www.sagpya.gov.ar.

The Corrientes province is an area where many national and foreign companies have set themselves up, all of which are the given buyers of the future crops.

The most recent commercial activity in the sector shows us the enormous interest that such companies have in our forestry sector, stimulating a considerable increase in the demand. This implies that the price of wood in Argentina, and in the Corrientes province in particular, will go up.

Finally, because of typical characteristics of forest cultivation, we can select the best moment to sell the wood since it is a non-perishable product.