Deal #812

Location #1

Spatial accuracy level
Country
Location
Costa Rica

Target country
Costa Rica

Land area

Size under contract (leased or purchased area, in ha)
[2014] 7000
Size in operation (production, in ha)
[2014] 4000

Intention of investment

Intention of the investment
For carbon sequestration/REDD, Forestry unspecified

Negotiation status

Negotiation status
[2000] Concluded (Contract signed)
Comment on negotiation status
Terra Vitalis passed through financial problems. Market conditions for investment in teak were negative in the Netherlands so the Terra Vitalis stakes could not be traded. There was then a period of uncertainty regarding the existence of Terra Vitalis Foundation ("STV") and investment in teak in Costa Rica. Finally, the fund could "transfer" its capital to Central American Timber Fund FCP-SIF (CATF, a Luxembourg investment fund) after having received approval from the Luxembourg and Dutch financial authorities. So, the financial product sold since 2000 under the name Terra Vitalis doesn't exist anymore. Terra Vitalis qui est une nouvelle compagnie sur le marché dont le domaine de compétences est le système de « meilleures pratiques » est en voie d’obtenir une certification FSC, elle investit actuellement au Costa Rica et au Brésil. (Source from 2002)

Implementation status

Implementation status
[2000] In operation (production)
Comment on implementation status
Terra Vitalis passed through financial problems. Market conditions for investment in teak were negative in the Netherlands so the Terra Vitalis stakes could not be traded. There was then a period of uncertainty regarding the existence of Terra Vitalis Foundation ("STV") and investment in teak in Costa Rica. Finally, the fund could "transfer" its capital to Central American Timber Fund FCP-SIF (CATF, a Luxembourg investment fund) after having received approval from the Luxembourg and Dutch financial authorities. So, the financial product sold since 2000 under the name Terra Vitalis doesn't exist anymore.

Operating company

Comment on investment chain
Terra Vitalis is an "mutual fund" that invested in "sustainable forestry". It failed and transfered its shares to a Luxembourg fund (Central American Timber Fund).

 

Network of parent companies and tertiary investors/lenders. Please right-click the nodes to get more details.

Legend
  • Is parent company of
  • Is tertiary investor/lender of
  • Left-click to reveal related parent companies and tertiary investors/lenders.
  • Right-click on investors to get more information.
  • Left-click to hide related parent companies and tertiary investors/lenders.

Data source #1

Data source type
Company sources
File
Comment on data source
Company website

Data source #2

Data source type
Personal information
Includes in-country-verified information
Yes

Data source #3

Data source type
Research Paper / Policy Report
File

Data source #4

Data source type
Media report
File

Data source #5

Data source type
Media report
File
Date
2002-06-01

Data source #6

Data source type
Company sources
File

Data source #7

Data source type
Company sources
File

Data source #8

Data source type
Media report
File

Data source #9

Data source type
Media report
File

Data source #10

Data source type
Company sources
File

Detailed crop, animal and mineral information

Crops area
Teak

Use of produce

Has export
Yes

Overall comment

Overall comment
It seems that Terra Vitalis Foundation, inverting in teakwood forestry in Costa Rica doesn't exist anymore and passed its shares to Central American Timber (Luxembourg) Fund. Further comments are inspired from a study by researchers of the University of Groningen about the principal economic caracteristics of tropical forestry funds. They apply to the cases that concern investment funds in "sustainable forestry". These cases manifest the apparition in the late 1990s of mutual funds investing in tree plantations, above all in Brazil, Costa Rica, Czech Republic, Ghana, Panama, Paraguay, Poland and Portugal. What made investments in tropical forest funds beneficial despite the "illiquidity" of tree plantations (return on 20 years) was the construction of markets for certified wood products (predominantly for teakwood), carbon trading and other eco-services payments. Now, according to the analysis, this type of investment in "sustainable forestry" doesn't appear anymore like profitable enough (in part because of funds management's costs) and as too risky (in part because of teakwood price' fluctuations). Funds are often linked between them.A lot of them are opaque in their structure and funcioning, and some of them fraudulent (operating without licences). Costa Rica has a long history of encouraging foreign investors by introducing strict laws to protect foreign leaseholders and shareholders. It is one of the most "extroverted" latinamerican economy.

Feb. 28, 2019, 8:49 p.m.

overwritten

This version

Compare with previous version

May 14, 2018, 9:56 p.m.

overwritten

Show this version

Compare with previous version

Feb. 27, 2018, 8:14 p.m.

overwritten

Show this version

Compare with previous version

Jan. 22, 2016, 6:59 p.m.

overwritten

Show this version

Compare with previous version

Jan. 8, 2015, 3:54 p.m.

overwritten

Show this version

Compare with previous version

June 14, 2013, 6 p.m.

overwritten

Show this version

Compare with previous version

June 14, 2013, 5:58 p.m.

overwritten

Show this version

Compare with previous version

May 24, 2013, 6:23 p.m.

overwritten

Show this version

Compare with previous version

May 24, 2013, 6:22 p.m.

overwritten

Show this version

Compare with previous version

March 19, 2013, 11:36 p.m.

overwritten

Show this version

Compare with previous version

Feb. 15, 2013, 5 p.m.

active

Show this version

First version

There are no comments to this deal yet.

Add a comment

(mandatory)
(mandatory)
(mandatory)

I've read and agree to the Data Policy.