PTF1 Jan 2011 07:20
Phaunos Timber Fund Limited
Phaunos announces the closing of two additional assets in Jiangxi, China
(December 31,2010), The Board of Phaunos Timber Fund Limited ("Phaunos" or the "Company") is pleased to announce that the Company's indirect subsidiary, Green China (Jiangxi) Forestry Co. Ltd ("GCJ") has completed two additional timberland acquisitions in Jiangxi, China, which werepreviously announced by the Company on July 14, 2010. The total consideration for both transactions is approximately US$13.2million. The assets consist of pine, fir, and other species, which are grown for the sawn timber market.
In November 2010, the World Bank raised its forecast for China's GDP growth in full-year 2010 to 10% from its previous estimate of 9.5%. Timber prices in China have recovered significantly in 2010. According to Wood Market's China Bulletin (November 2010 edition),the price of fir and pine in Fuzhou, Fujian Provincehas increased 13% and 9% respectively, compared to the same period last year.
Qinhai Xia, Director of Investments and Acquisitions at FourWinds Capital Management, the Company's investment manager, commented on the announcement, "We are very pleased to complete the acquisition of these two assets. With sustained strong GDP growth in China, we continue to believe thatthe fibre shortage in China will take time to reach equilibrium while timber prices continue the favourable trend."