TREE.L Regulatory News (TREE)

30 Apr 2007 11:53

Cambium Global Timberland Limited30 April 2007 Cambium Global Timberland Limited Headline: Cambium Global Timberland Limited Secures First Timberland Asset The Directors of Cambium Global Timberland Limited (Cambium) are pleased toannounce that Cambium has secured an option to acquire the fund's firsttimberland asset. The 8,500-hectare (21,500-acre) reforestation project is located in New SouthWales, Australia. The option allows for the fund to purchase the property for9,100,000 AUD. Cambium intends to use half of the property to establishhardwood plantations for sawlogs that can be sold to rapidly growing timbermarkets in Asia and other parts of the world. In addition, a significant sourceof shorter term returns is expected to come from the sale of carbon credits,units awarded under a government scheme for the removal of carbon dioxide fromthe air. The operation of a regulated carbon emission reduction scheme in NewSouth Wales provides real value to the carbon asset associated with forestryactivities. The property will allow for growth from the development of the timber plantationand income from the environmental assets. After the reforestation is completethe investment is expected to fill approximately twenty-five percent ofCambium's target allocation for the Australia/New Zealand region. Cambium Global Timberland Fund Closes First Property Investment Multiple Revenue Sources Expected to Produce Short- and Long-Term Returns St Helier, Jersey - April 30, 2007 - Cambium Global Timberland Ltd (Cambium), acompany established to invest in a global portfolio of forestry-basedproperties, today announces that it has secured an option to acquire the fund'sfirst timberland asset. The 8500-hectare (21,500-acre) property, located in NewSouth Wales, Australia, is in line with Cambium's strategy to providesubstantial returns from timber growth as well as various environmental options,such as the sale of carbon credits. Cambium was launched in early 2007 and is traded on the AIM market of the LondonStock Exchange. Cambium is managed by CP Cogent Asset Management, LP, which iswholly owned by Cogent Partners, LP, an independent investment bank specializingin alternative assets. "Cambium's first timber holding in Australia is representative of our objectiveto extract multiple revenue streams from each property," says Matthew Haertzen,chartered financial analyst of Cogent. "We are confident that the land will notonly achieve strong long-term returns from timber production but will also allowus to capitalize on more immediate environmental options to supplement thereturn to investors." Cambium intends to use half of the property to establish hardwood plantationsfor sawlogs that can be sold to rapidly growing timber markets in Asia and otherparts of the world. In addition, a significant source of shorter term returnsis expected to come from the sale of carbon credits, units awarded under agovernment scheme for the removal of carbon dioxide from the air. The operationof a regulated carbon emission reduction scheme in New South Wales provides realvalue to the carbon asset associated with forestry activities. To take full advantage of the property's environmental value options, Cambiumhas enlisted the services of New Forests Pty Limited, an Australian forestryinvestment advisory firm with specific expertise in managing environmentalrevenues. New Forests acts as a sub-advisor to Cambium. In addition to thepotential for government-accredited carbon credits, these options include: • A $1 million incentive payment from the regional natural resource management authority for biodiversity and salinity reduction outcomes as a result of responsible land management. This incentive payment will be amongst the largest of its kind in Australia to date and demonstrates the potential value of improved environmental management. • A water license for 105 million liters of water per annum. • The opportunity to sell carbon credits to buyers outside the government regulated emission reduction scheme, including retail carbon products to individuals and businesses. New Forests will also be pursuing other longer term options, such as thedevelopment of a wind farm on less fertile sections of the land that wouldgenerate consistent lease revenue once operational. Moving forward, Cambium will continue to invest in additional forestry assets oroperations which can be managed on an environmentally and socially sustainablebasis. Ultimately, Cogent Partners expects to build an optimized portfolio oftimberland investments -- diversified by location, age, class and species - togenerate superior total returns to the fund's investors. About Cogent Partners Cogent Partners is a leading private equity-focused investment bank thatspecializes in secondary market transactions and related private equity researchproducts for institutional investors. Recognized globally as the leader inprivate equity sell-side advisory services, Cogent Partners has earned areputation for successfully initiating, marketing, negotiating, structuring andclosing the sale of private equity assets. Since inception, the company hasadvised on more than $12 billion in private equity commitments. The firm'sresearch group offers a range of private equity monitoring and due diligenceservices. Cogent Partners is headquartered in Dallas, with offices in New York,London and Tokyo. For more information, please visit www.cogent-partners.com About New Forests Pty Limited New Forests Pty Limited is a forestry investment management and advisoryservices firm based in Sydney, Australia. The company's investment thesis isunique in seeking assets that deliver traditional timber returns, as well asreturns from emerging environmental markets and preferences, such as certifiedtimber, carbon, biodiversity and water. In addition to world-leading forestryinvestment expertise in the areas of acquisitions, modeling, operations,silviculture and ecosystem services, New Forests is at the forefront ofdeveloping and commercializing environmental products and evaluatingopportunities from emerging environmental markets. The company holds anAustralian Financial Services License. For more information, please seewww.newforests.com.au Contact:Matthew HaertzenCP Cogent Asset Managementmhaertzen@cogent-partners.com+1-214-871-5421 This information is provided by RNS The company news service from the London Stock Exchange