Phaunos announces JV to invest in Eastern Europe up to $150 million
07/04/2008 - 12:26
Phaunos Timber Fund Limited, a closed-ended investment company established to invest in timberland and timber related assets, announced last week that it has reached in principle agreement to
establish a joint venture with Aitchesse Limited, the
Scottish-based forestry specialists, to invest in Eastern Europe.
The two companies will form a Newco aimed at investing in forestry assets across the region.
Investments could begin as early as the second quarter of 2008.
It is expected that Phaunos will potentially be able to commit up to $150m to the project. Funding is anticipated to be drawn from one or a combination of Phaunos's existing resources, from cashflow from the Company's existing portfolio, from syndication of its participation and/or from the proceeds of the Company's proposed C-share offering, depending on the size of the investment required.
Aitchesse, which has an office in Eastern Europe and has been building a
pipeline of forest investments there since 2006, will commit resources including access to its extensive research, most notably in legal and network issues, access to its current pipeline and Eastern European office and workforce.
Aitchesse's pipeline consists of some 15 parcels of naturally forested lands of primarily mixed temperate hardwoods and commercial softwood species. All forests will be managed in accordance with the Forestry Stewardship Council standards.
Phaunos' existing investments in Eastern Europe include wood pellet processing facilities in Serbia.
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