Aug 20, 2008 08:00
St Peter Port, Guernsey, August 20, 2008 - The Forest Company Limited ("The Forest Company" or the "Company"), a closed-ended investment company incorporated and registered in Guernsey, announces its first investment - the Rio Formoso project.
The Rio Formoso project is an afforestation project, through a cluster of farms that are located in relatively close proximity to each other in the Pirapora region in Brazil. Agreements to purchase land from several different land owners in the region have been signed. The total investments related to the land acquisition amount to circa USD 23 million.
The establishment of the eucalyptus plantations will be initiated in the planting season of October-December 2008. The majority of the planting is expected to occur in the planting season of 2009. The end use of the eucalyptus is charcoal, which in due time will be sold at spot price in Brazil.
J. Harald Örneberg, founder of The Forest Company and CEO of Timber Capital Limited, the Company's investment manager, said:
"We are pleased to announce our first investment and believe that this investment demonstrates our ability to structure and execute on investments that will add significant value to the Company. The investment follows our strategy; to invest in sustainable forests, providing strong real returns through an attractive mix of yield and capital return to shareholders"
For additional information, please contact:
J Harald Örneberg, CEO Timber Capital Limited, Member of the board The Forest Company. Tel: +46 730 44 48 25
About The Forest Company:
The Forest Company was founded in 2007. The business concept of the Company is to use experienced Directors and an Investment Manager, with expertise in the forestry and financial sectors, to build and sustainably manage a diversified portfolio of trees, timberland and other timber related assets. The emphasis will be on investments with high biological growth, directly or in partnership with major wood fiber consuming industrial entities or other suitable partners.
In March 2008 The Forest Company completed its first capital raising amounting of USD 50 million. Management invested USD 10 million and the other shareholders include Ilmarinen, Ahlström, Sampo, Kåpan and Robur.
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