IF Christmas is coming, Christmas tree investment offers cannot be too far behind. Just as the Fourth Forestry Fund was closing its share offer last Friday, another forestry investment company, Royal Irish Silvaculture, was announcing details of its latest effort to raise £1.1 million to acquire 200 acres of land in Carlow for the planting of Noble Fir Christmas trees.

This is the fourth planting venture for this company which expects to harvest the trees within seven to nine years. Its market for the harvested trees is mainly Germany and a number of other European countries, including Britain where the market for needle-retaining trees is expected to rise to 16 million trees over the next three years.

You will need a minimum £10,000 to invest in this forest and the company is projecting a total tax-free return of £25,091 at the end of nine years, or the annual net equivalent of 13.43 per cent.

No dividends will be paid until after the investor loans have been repaid in full. Cash returns on the initial £10,000 are projected from year six onwards when payments of £5,534 will be made; £9,058 in year seven, £6,309 in year eight; £4,189 in year nine for a total of £25,091 of which £15,091 is the net return.

The risks associated with an investment like forestry are real enough: fire, disease, weather and theft and animal damage. The company claims it is satisfied it has covered most of these risks with good horticultural practice and insurance, but it points out that it cannot make any guarantees about how the market will develop, or to any changes in tax and other legislation. The projections are not guarantees, but illustrations if all goes well.

Make sure to get independent professional advice before you commit yourself to this or any other substantial investment.

The Royal Irish Silvaculture (IV) offer closes on December 18th.

For a copy of its information memorandum contact Ian Craigie at (01) 662 8666 or Graham Smyth at 087 2351889.