Phaunos Timber has announced the sale of two of its four teak plantation assets, from the Brazilian Eucateca estate, for US$ 2.5m. According to the company, the combined properties sold represent 32% of the total 2,193 net planted hectares of teak on the estate and the sale involves an initial payment of US$ 0.5m with the remaining USD 2.0m paid in stage payments between 2016 and 2018. The company says that the discounted value of these payments represents a 41% premium to the USD 1.6m NAV allocated to these properties. The manager of the fund says that the sale, at a premium to NAV, reflects the underlying agricultural value of the farms and that the two remaining properties represent, from a timber perspective, the better quality Eucateca teak stands. The company says that the transaction is in line with the previously announced strategy of targeting for sale non-core assets and opportunistically selling immature, non-yielding assets.
Phaunos Timber sells two Brazilian teak properties for US$2.5m : PTF