Naturewalk is a fully master planned development in the Central Pacific Region of Costa Rica. In addition to owning a home in paradise, owners can also benefit from income from fully managed high value crops growing on their lots (teak, vanilla, ginger, papaya, tiquisque, nampi, pineapple, coffee and asian vegetables). Naturewalk has started an adventure center on site providing horse riding, ATV tours, mountain biking, canoeing, kayaking, fishing, walking and birdwatching. Because of the downturn in the global economy Naturewalk has been focussed on the agricultural aspects of its offerings. With improvements in the global economy, Naturewalk is now focussed on development and has a range of home designs available and intends to commence construction of homes before Christmas 2015. There are a range of investment opportunities available within Naturewalk: ● Land and agricultural crops ● Homes ● Joint Venture Investments with the developers ● Fixed rate fixed term loans to the developers paying up to 12.75% interest per annum Land and Agricultural Investments All lots in Naturewalk are development lots. Each lot is freehold title and has the permissions to build one home. In addition, each lot has the added advantage of a fully managed agricultural crop growing on the lot giving an income. Kavel Sales & Management t/a Costa Rica Invest. Registered office Harmony Court, Harmony Row, Dublin 2. Co Reg No 456307
The Naturewalk farming company manages the crop and the management fee comes from a share of the crop yield** Crops in Naturewalk include: Asian Vegetables, Tiquisque, Nampi, Vanilla, Teak, Pineapple, Coffee, Papaya, Ginger, Cocoa. Different crops have different yield and risk profiles. Typically the faster growing crops e.g. Asian Vegetables show much more market price fluctuation than the slower growing crops e.g. teak. Please contact Costa Rica Invest for details on the particular risk and return profile of each crop. Naturewalk specialises in intercropping various crops on lots. This serves to diversify the agricultural investment and “even out” returns An example of this intercropping is an intercrop of teak, ginger and papaya. As an example of the type of yields and returns you might expect from this type of intercrop: Land Premium view lots in Naturewalk carry a premium pricing. Naturewalk has nonpremium view lots available from $9.50 per m2. These lots are development lots and land price appreciation is expected in tandem with development taking place throughout Naturewalk. For example a 1ha nonpremium lot would cost US$95,000**: This lot could then be planted with an intercrop of ginger, papaya and teak.
Kavel Sales & Management t/a Costa Rica Invest. Registered office Harmony Court, Harmony Row, Dublin 2. Co Reg No 456307
Teak The projected return for milled teak is US$20,000 per 1,000m2 or US$200,000 per ha. It should be noted that teak only becomes significantly valuable when the trunks are large enough to be milled into standard sized teak planks. Before that, whilst the teak has value it is much lower as the teak from smaller trees that cannot be milled into standard planks has limited usefulness. Naturewalk has its own teak mill and furniture manufacturing facility on site providing a ready market for teak and also allowing the value addition of rough sawing the teak. This intercropped teak is a faster growing hybrid which is expected to be of harvest size in 17 years. The projected returns are based on current prices of rough sawn milled teak after milling losses and costs. Teak logs (unmilled) will achieve a significantly lower return. Projected return for milled teak lots is US$20,000 per 1,000m2. However, teak on an intercropped lot needs to be spaced out slightly further (20% more space) to allow ginger and papaya be intercropped among it. The calculation is therefore as follows: US$20,000 X 10 X 0.8 = $160,000 at year 17 Teak maintenance is charged at $100 per 1,000m2 per year. Therefore the annual teak maintenance bill will be $1,000 on a 1ha lot
Kavel Sales & Management t/a Costa Rica Invest. Registered office Harmony Court, Harmony Row, Dublin 2. Co Reg No 456307
Ginger The most recent harvest of intercropped ginger in Naturewalk yielded a gross yield of $17,750 per ha This lot will be entirely planted with Ginger. However, a 20% reduction should be factored in for areas which are unplantable. The farming company charges a 40% yield share to cover their costs. Therefore the calculation is as follows: $17,750 X 1 X 0.8 X 0.6 = $8,520 per year after all costs. Papaya The most recent intercropped papaya price and yield in Naturewalk gave a return of $19,300 per ha This lot will be entirely planted with papaya. However, as with the ginger a 20% reduction should be factored in for areas that are unplantable. The farming company charges a 40% yield share to cover their costs Therefore the calculation is as follows: $19,300 X 1 X 0.8 X 0.6 = $9,264 per year after all costs. Kavel Sales & Management t/a Costa Rica Invest. Registered office Harmony Court, Harmony Row, Dublin 2. Co Reg No 456307
Total Returns So the total return projected from the papaya and ginger on this 1ha lot is $17,784 per year. After teak maintenance charges ($1,000)**, LLC running costs ($150)** and property tax (0.25% = $237.50)** this would give a net return of approximately $16,396.50. (16.7%pa yield on land and closing costs) Teak returns would be expected at $160,000 at 17 years. **Additional costs There are some additional costs to be aware of: ● Closing costs are 3.2% of the purchase price and this covers all legal fees, taxes and duties ● Farming costs: teak produces a return at harvest and the farming company charges an annual maintenance charge of US$100 per 1,000m2 and they receive no share of the teak harvest. For all other crops the farming company is compensated with a share of the harvest returns (40% for ginger and papaya). ● LLC establishment, for most land purchases we recommend you hold your land in an LLC. There are a number of advantages to this. Cost of set up by the Naturewalk lawyers is US$950 and running costs are US$150 per year. ● Property tax in Costa Rica is 0.25% of the registered value of the land. Projections These projections are based where relevant on actual returns achieved in Naturewalk over previous harvests or on figures which the Naturewalk farming company believes are conservative but are not guaranteed by Naturewalk or the Sellers. No increase in crop prices is assumed over the years. An increase in crop prices and yields will result in higher returns. A fall in crop prices and yields will result in lower returns. Past performance is no guarantee of future returns. Returns and yields from agricultural commodities are subject to a number of external factors including weather, biological growth, disease, pests and market forces which are beyond the control of Naturewalk Farming Company and the Seller.You are advised to carry out your own due diligence in regard to projected yields and returns.
Kavel Sales & Management t/a Costa Rica Invest. Registered office Harmony Court, Harmony Row, Dublin 2. Co Reg No 456307
For more details on the opportunities in Naturewalk please contact Costa Rica Invest USA +12026979284 or Europe +35312724184 or info@costaricainvest.ie
Kavel Sales & Management t/a Costa Rica Invest. Registered office Harmony Court, Harmony Row, Dublin 2. Co Reg No 456307