Sep 12, 2011 16:00
UPDATED ON OCTOBER 19th, 2011
St Peter Port, Guernsey, September 12th, 2011
The Forest Company invests in 32,640 hectares, including 17,270 hectares of planted eucalyptus in Minas Gerais, Brazil.
St Peter Port, Guernsey, Monday 12th September, 2011 - The Forest Company Limited, a closed-ended investment company, incorporated and registered in Guernsey, announced its investment in 32,640 hectares, including 17,270 hectares of planted eucalyptus in Minas Gerais, Brazil. The investment was made in cooperation with a local Brazilian partner.
The eucalyptus plantation is forecast to generate a total harvest volume of approximately 4.4 million m³ by 2017, suitable for Biocarbon production. The plantation will be managed by Timber Capital, in a sustainable manner. The location close to the existing Ibiracu project is foreseen to generate substantial synergies regarding management, between the two projects.
J. Harald Orneberg, CEO of Timber Capital commented that "We are very happy to announce our investment in this very well managed eucalyptus plantation next to our existing Ibiracu project in Minas Gerais, Brazil. The region, which is well known to us, provides a combination of proven conditions for eucalyptus plantations and a strong market for Biocarbon. This investment will generate substantial free cash flow and will be an excellent complement to The Forest Company's existing investment portfolio."
About The Forest Company:
The Forest Company combines socially and environmentally responsible forestry investments with unique potential for stable and attractive returns through participation in the value chain of competitive and sustainable industries.
The Forest Company Limited is a closed-ended investment company, incorporated and registered in Guernsey in 2007, in order to take advantage of investment opportunities in trees, timberland and timber related assets. The Company focuses on forest plantations in areas with high biological growth rates, such as Brazil and Colombia. As of Aug 19th, 2011, The Forest Company has raised USD 262 million in equity capital through private placements to institutional investors and family offices. Thus far, the Company has committed capital to four projects, which include both greenfield and standing plantations located in Brazil and Colombia.
The Company aims to build a diversified timberland portfolio in terms of age, class and species that is intended to maximise the risk/return profile. The Company believes that this approach will generate both long-term capital appreciation for shareholders and an attractive and sustainable income yield. For more information, visit www.theforestcompany.se.
Timber Capital Limited is the investment manager to The Forest Company.
For additional information, please contact:
Vielcka D. Dutt, The Forest Company, +1 441 295 4736
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This press release is not for distribution, directly or indirectly, in or into the United States (including its territories and dependencies, any State of the United States and the District of Columbia), Canada, Australia or Japan. This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act").
Securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act.
This document is an advertisement and does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any decision in respect of The Forest Company Limited or other evaluation of any securities of Forest Company Limited or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities. Neither the issue of this document nor any part of its contents constitutes an offer to sell or invitation to purchase any securities of Forest Company Limited or any other entity or any persons holding securities of Forest Company Limited.