Teak Tree Investment
The Pension Asset
Investment Overview
Species
Tectona grandis (Teak)
Minimum investment
$500
Teak component
30% of the 1,666/ha mix = 500 stems/ha initial, thinned to 180 retained stems
Location
Zimbabwe — climate rated highly suitable (MAT 18–26°C, distinct wet/dry seasons, red soils)
Management
Fully managed by MarillionEx for 30 years
Illustrative IRR
22% (based on Teak component returns only)
Why Teak?
- One of the world's most commercially valuable hardwoods
- Market price: $800–$1,200/m³ at 15 years, rising to $2,000–$4,000/m³ at 25+ years
- Global Teak prices have appreciated 6-8% per year for 20 years
- Drought-resistant once established — lowest management risk of all three species
- Premium end-markets: EU and UAE high-end furniture, marine decking, luxury construction
- Even at 15-year structural grade, Teak commands nearly 2.5× Albizia pricing
- Teak component alone generates 52% of total Year 15 gross timber value
Harvest Economics
| Metric | Year 15 | Year 25–30 (Cycle 2) |
|---|---|---|
| Retained stems/ha | 180 | 180 |
| Merchantable volume | 17.1 m³/ha | 25+ m³/ha (est.) |
| Price per m³ | $920 | $2,000–$4,000 (est.) |
| Gross value per hectare | $15,732 | $50,000–$100,000 (est.) |
Note: Year 15 price of $920/m³ is CONSERVATIVE. Trees planted in 2026 will be harvested in 2041 — at 6–8% annual Teak price appreciation, the actual harvest price could significantly exceed this estimate.
Key Numbers
$15,732/ha
Teak gross timber value at Year 15
52%
Teak's share of total timber harvest value
$920/m³
Conservative Year 15 Teak price
6-8%/yr
Historical global Teak price appreciation
Calculation Transparency
Teak timber price: $920/m³ at Year 15 — conservative 2026 market rate
Historical Teak price appreciation: 6–8%/yr globally for 20+ years
Retained stems at Year 15: 180 stems/ha (from 500/ha initial, thinned progressively)
Merchantable volume at Year 15: 17.1 m³/ha (structural grade)
IRR: 22% illustrative — based on Teak component returns only
Engine: MarillionEx v3.0 indigenous silviculture simulation
Disclaimer: All financial projections are estimates based on current market prices and growth assumptions. They do not constitute financial advice or guarantees. Independent professional advice should be sought before making investment decisions.