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Phaunos Timber sells three Uruguayan assets

The Board of Phaunos Timber Fund has announced the sale of three of the nine properties that comprise the Pradera Roja estate, in Uruguay, for USD 4.2 million. The sale is in line with the strategy announced earlier this year, of rebalancing the Company’s portfolio to one that has more mature, yield producing assets. The Company’s manager, Stafford Timberland is targeting for sale non-core assets and opportunistically selling immature, non-yielding assets.

The properties represent 20% of the total 3,353 net planted hectares at Pradera Roja and 20%, or USD 4.6m, of the USD 23.5m June 30 2015 Net Asset Value attributable to Pradera Roja.  The sale price of USD 4.2m represents a 9% discount to that Net Asset Value.

The proceeds of this sale when combined with last month’s sale of two Eucateca teak properties amount to an estimated USD 6.7m (USD 6.4m on a discounted basis) relative to a combined Net Asset Value of USD 6.2m.

Stephen Addicott of Stafford said “The sale of these Pradera Roja properties is in line with a general strategy to monetise immature, greenfield assets within the Phaunos portfolio.  This sale will enable us to further lower our annual operating costs by reducing the extent of high cost pruning operations and annual management fees incurred“.

They also say that sales progress continues to be made on the sale of other non-core assets.  Some of these negotiations are well advanced and, once completed these sales will further lower annual operating costs in addition to rebalancing the portfolio.

PTF : Phaunos Timber sells three Uruguayan assets

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