30 Sep 2010 07:00
30 September 2010
Cambium Global Timberland Limited ("Cambium" or "Company")
Land Sale
Cambium has entered into an agreement to sell 14,273 acres of land located around Corrigan, Texas. This property represents approximately 27% of the Company's property in the southern United States and 13% of the value of the Company. Net of sales commissions and other transaction costs proceeds will be $18,100,000 equating to 97% of NAV from the last appraisal cycle at year end 30 April 2010 and 111% of the Company's current cost basis.
About $5,300,000 of the proceeds will be used to pay down principal on the amount borrowed by the Company in May 2010. The remaining amounts will be reinvested in higher return projects including the Company's forestation projects in Brazil.
Cambium Director Colin McGrady states "We are excited as the price achieved is fair and allows Cambium to rebalance the portfolio to higher returning opportunities. In particular we believe the risk-return profile of our operations in Brazil are very attractive."
The transaction is expected to close before 17 November 2010.
For more information:
Investment Manager
CP Cogent Asset Management
Richard Standeven
+1 214 871 5400
Broker
Matrix Corporate Capital LLP
Paul Fincham / Jonathan Becher
+ 44 (0) 20 3206 7000
Nominated Adviser
PricewaterhouseCoopers LLP
Melville Trimble
+ 44 (0) 20 7 213 8898
Ends