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TIDM | PTF |
Headline | Uraguayan Property Realisation |
Released | 10:00 12-Jul-2012 |
Number | 5161H10 |
RNS Number : 5161H Phaunos Timber Fund Limited
12 July 2012
(12 July 2012), The Board of Phaunos Timber Fund Limited
("Phaunos" or the "Company") is pleased
to announce the sale of the Don Chico plantation, part of
Phaunos' Pradera Roja investment for US $5.7 million,
payable to the Company in cash in US dollars. Don Chico is
located in eastern Uruguay and is comprised of approximately
1,567 hectares with over 700 hectares planted in various
Eucalyptus species. The Don Chico land was purchased in 2009
for US $2.9 million. Don Chico represents 13% of the Pradera
Roja estate of 11,921 hectares. The Pradera Roja investment
was valued at US $32.2 million as at 31 December 2011. The
portion of this value attributable to Don Chico as at 31
December 2011 was approximately US $4.1 million.
Phaunos completed planting in 2010. Phaunos manages its
Pradera Roja plantations for saw logs. Union Capital Group,
based in Montevideo, Uruguay, is the property manager for
Pradera Roja. The buyer of the Don Chico plantation is
Bosques del Uruguay, an institutional timberland investor
that invests in sustainable Eucalyptus plantations in
Uruguay. After the sale, Phaunos' remaining land
ownership in the Pradera Roja estate will be 10,354 hectares,
with approximately 5,000 hectares in Eucalyptus
plantations.
Sir Henry Studholme, Chairman of Phaunos, said: "The Don
Chico disposal is part of the investment manager's
ongoing exploration of ways to smooth cash flows, including
looking at the sale of younger assets, which were originally
planted to allow the possibility of sale to other timber
investment managers."
Liane Luke, Managing Director at FourWinds Capital Management
("FourWinds"), the Company's investment
manager, commented, "We believe timberland appraisals
are very conservative when valuing new and young plantations,
like Pradera Roja. Agroempresa Forestal, manager of Bosques
del Uruguay, is thoroughly expert in Uruguayan timberland and
we are happy they have acknowledged the intrinsic value of
the property at fair market value."
Kristen Kleiman, Director of Investments and Acquisitions at
FourWinds said, "We believe the price is fair and
reflects the market value of well managed Eucalyptus
plantations in eastern Uruguay. Phaunos is satisfied that its
investment strategy of purchasing bare land, establishing
plantations and managing those plantations to their highest
quality has been borne out in this sale. This is a relatively
new strategy in this part of Uruguay and we are pleased that
the future of forestry in Uruguay is progressing as we had
projected."
Kimberly Tara info@fourwindscm.com
Liane Luke
Andrew Monk 0203 005 5000
Winterflood Investment Trusts (Joint Corporate Broker)Jane Lewis 020 3100 0295
Citigate Dewe Rogerson (PR Advisor)Kevin Smith / Lindsay Noton 020 7638 9571
Legis Fund Services Limited (Administrator)Patricia White 01481 732 192
Notes to Editors
Phaunos is a Guernsey-domiciled closed-ended investment
company authorised by the GFSC. Its ordinary shares are
listed on the Main Market of the London Stock Exchange. The
Company's investment objective is to provide
shareholders with attractive long term total returns,
expected to be in the form of capital appreciation but with
some income, through a diversified portfolio of timberland
and timber-related investments.
The Company's investments are managed by FourWinds
Capital Management.
The Company's portfolio consists of timberland and
timber-related investments across 6 continents. As at
31 December 2011, the Company's audited NAV was US$558.8
million (being US$1.04 per ordinary share).
The Company intends to seek investments that meet or exceed
the guidelines set out in the Sustainable Forestry Initiative
and, wherever possible and practicable, to certify the lands
under the Forest Stewardship Council guidelines.
The Company's ticker is PTF.
END DISRTMPTMBABMIT
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