21 May 2008 10:35
21 May 2008
Cambium Invests in Eucalyptus Plantation
Further Development on Big Island of Hawaii
Jersey - The Directors of Cambium Global Timberland Ltd are pleased to announce it has completed the acquisition of approximately 4,500 acres of leasehold interest of timberland for approximately 4,000,000 Sterling. The "Pinnacle" asset is located on the Big Island of Hawaii. The Pinnacle purchase complements the "Pahala" asset that is also located on the Big Island.
Pinnacle is Eucalyptus plantation and has an age-class distribution that balances the Pahala project Cambium purchased in the fall of 2007. When taken together these two assets provide a consistent cash flow distribution beginning in 2012 when the oldest trees start to mature. Returns are forecast to be on the upper end of Cambium expectations for North American properties.
The initial lease term can be extended until 2025. The property will be managed for future timber production in response to market needs. This is expected to include replanting of Eucalypt species and yield enhancement through the establishment of high-value tropical hardwood plantations, which are experiencing increasing demand worldwide.
Cambium will continue to professionally manage the timber on an ongoing sustainable basis while also actively working to monetize values associated with emerging environmental markets.
The project will be managed by New Forests Asset Management.
For More Information:
CP Cogent Asset Management
Rich Standeven / Matt Haertzen
+1 214 871 5400
Landsbanki Securities
Paul Fincham / Jonathan Becher
+44 (0)207 426 9000