August 10, 2015 13:24 ET

ENDVEST Launches Responsible Real Estate Investment in the Philippines

NEW YORK, NY--(Marketwired - August 10, 2015) - ENDVEST, a global real estate investment and crowdfunding platform, has recently announced their newest offering: timber fields in the Philippines on the island of Negros.

An agreement was reached between the local native cooperative communities, the Philippine government, the sponsor Pan Pacific AgroTech (PPAT) and ENDVEST. The area, which is inhabited by numerous indigenous tribes, suffers from 60-70% unemployment and a lack of resources and capital. The project is expected to immediately create up to 200 new jobs and eventually employ as many as 1,000 in the area.

The sponsor, PPAT, will work with existing communities to reestablish their cooperatives to participate in the program. These cooperatives will receive 15% of the net profits, which will go toward education, infrastructure, and access to clean water, electricity, and power.

PPAT will provide the management expertise and resources needed to vastly improve the quality of life among the impoverished tribes, while offering an attractive return to partners who invest on the online platform.

Existing timber and bamboo was planted by the Philippine government over 15 years ago with the intent to be harvested by the native cooperatives. But these cooperatives lack the funding, equipment and market resources to harvest efficiently. As a result, the timber and bamboo plats are in danger of overgrowing and suffocating the forest. The funds raised through ENDVEST will be deployed by PPAT to bring in equipment & supplies, build necessary structures and hire the local labor to harvest and replant the land and support the community.

Historically, Southeast Asia’s timber production was limited to regional markets. But, an increase in worldwide demand and a 45% decline in supply will increase timber prices, rendering this deal economically viable. Furthermore, Asia’s economic status makes this investment attractive. In 2010, Asia comprised 28% of the world’s GDP. In 2030, Asia will make up 34% of the world’s GDP, an almost 22% increase.

“We’ve noticed that the growing demand in Southeast Asia for timber products is currently not being met by local producers. The global financial crisis led to a sharp decline in regional timber investments which will soon result in a shortage of local timber,” says Armand Boyajian, COO of ENDVEST.

This arrangement utilizes a unique strategy, called reforestation, to sustainably harvest the land, replanting three trees for every one that is harvested. This is not only the first economically and environmentally sustainable real estate project on ENDVEST; it’s the first of its kind on any real estate investment platform.

The project allows investors to invest in a $1.6 million senior loan for as little as $1,000. The loan offers a fixed 18% return to investors over a five-year horizon. ENDVEST has indicated that the project can accommodate a limited number of non-accredited investors under Title II of the JOBS Act and Rule 506 (b). Under that same rule, an unlimited number of accredited investors can participate at any level of investment in the Project.

This project is the first part of ENDVEST’s new Social Impact Initiative, which will regularly feature deals that are both socially responsible and profitable.

The Social Impact Initiative is ENDVEST’s answer to Responsible Real Estate (RRE), a fairly new genre of commercial real estate that encourages sustainable development. RRE is the product of an increased awareness for environmental mindfulness rather than maximizing building size and profitability in developing property.

“We’re very careful to assess each risk before offering opportunities to our investors and remain confident in the project’s profitability. We also believe investors are mindful of more than just their returns. We’re aiming to identify more projects that simultaneously create social and economic value for our investors,” says Jack Boyajian, CEO of ENDVEST.

The project will officially open for investment with the launch of ENDVEST 2.0, the company’s updated platform, slated for release in the coming weeks. Continue the conversation on Twitter or Facebook.

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