 Your new post is loading...
Your new post is loading...
|
Scooped by
Prentiss & Carlisle
March 31, 2017 9:08 AM
|
US-based timberland investment management organizations (TIMOs) have led a group of institutional investors that manage timberland assets in Brazil. This research investigates US-based TIMO strategies and preferences in investments in Brazil. We performed a statistical cluster analysis to identify similarities between TIMOs according to forest, institutional, and macroeconomic preferences. Four TIMOs had similar strategies and ranked macroeconomic indicators as more important than forest and institutional elements for making investments. Return and risks were listed as the most crucial variables in investment strategies. Market size, political risk, tax systems, and timber markets were also cited as important indicators of a business environment. Brazil and other emerging countries should focus on political stability, granting complete land tenure rights, and simplification of the tax system to attract new investors to timberland.
|
|
Scooped by
Prentiss & Carlisle
July 25, 2016 11:21 AM
|
The imminent lifting of Brazil's limits on foreign land ownership is expected to unleash investments, principally by large funds in search of long-term returns, and reignite a slice of the stagnant real estate market. The government of President Luiz Inacio Lula da Silva shocked investors in 2010 when he put the breaks on foreigners' purchase of large pieces of agricultural land. It cited concerns over plans by Chinese investors to buy state-sized tracts of land the government said would threaten national sovereignty. With the impeachment of Lula's hand-picked successor, suspended President Dilma Rousseff, Brazil is under interim President Michel Temer, who hopes that new foreign investment into farm land will breathe life into a moribund economy. *** A high-level source in the government said on Thursday it plans to ease farm land ownership restrictions in a package of measures in the coming months. Some criteria will be included in the measures to mitigate undue speculation in farm land, the source said.
***
Segments that will benefit from the re-opening of foreign investment into land are timber and pulp and paper. They require large volumes of capital for long-term investments, which dried up here after 2010. "It's an industry of great scale. You need a free and open market. We have multinational firms with repressed demand and national companies with distorted market valuations," said Elizabeth Carvalhaes, executive president of the Brazilian Timber Industry Association. The depreciation of Brazil's real against the dollar over the past year and the tight credit environment will also grease the wheels of land sales for foreign investors, analysts said.
|
|
Scooped by
Prentiss & Carlisle
September 2, 2014 4:31 PM
|
US automobile production may have risen at its fastest in five years last month. But it is not enough to help out struggling Phaunos Timber Fund, for which a wet Brazilian soybean harvest, would also help reverse its somewhat disappointing performance.
The first public report by forestry consultancy Stafford Timberland of Phaunos's assets, which recommends the sale of at least one of the investments, has revealed the breadth of the influences on the performance of the portfolio. These include well-recognised drivers, such as the performance of China's construction industry, a well-documented, major timber consumer, likes its peer in the US, but whose slowdown prompted a 16% drop in lumber imports in the January-to-March period, compared with the quarter before. The impact, thanks to raised log inventory levels at Chinese ports, has been a 20-30% slump in log prices in the April-to-June quarter in New Zealand, a major timber exporter, where Phaunos Timber Fund owns 35% of forestry group Matariki.
***
Other factors influencing Phaunos's fortunes include the fate of the soybean harvest in Brazil, where it owns outright Eucateca in the major corn and soybean growing state of Mato Grosso. Eucateca, besides owning teak plantations, which it has failed in an effort to sell, provides eucalyptus as a biomass fuel for drying crops.
And US auto production is also a driver, through its consumption of pig iron which has, historically, been largely sourced from Brazil. Phaunos's 19,000-hectare Mata Mineira operation in Minas Gerais, a state better known for coffee production, provides eucalyptus logs for converting into charcoal, in turn a major component of pig iron. "[Brazilian] pig iron produced from charcoal has declined by approximately 33% since 2007, due in part to decreasing US demand and unfavourable exchange rates," Stafford said.
***
Stafford gave its insight into the Phaunos portfolio as it recommended the sale of some investments deemed "higher risk", including some which comprised immature trees too young to harvest.
|
|
Scooped by
Prentiss & Carlisle
January 23, 2013 2:49 PM
|
Pine plywood was the only product where the Brazilian timber industry achieved an increase in exports last year as the sector saw its overseas earnings fall overall by 1.4%.
According to the latest International Tropical Timber Organisation (ITTO) statistics, in total, Brazil's timber exports were worth US$2.36bn, against US$2.39bn in 2011.
Pine plywood exports rose 14.5% to hit US$372m (a jump in volume from 865,600m3 to 983,900m3). But this was offset by falls in pine sawnwood from US$170m to US$158m, tropical sawnwood from US$238m to US$194m, and tropical plywood from US$46m to US$36m. The latter represented a volume fall from 75,000m3 to 58,000m3.
Para state remains one of Brazil's biggest tropical timber producing and exporting states, but in 2012 it saw its share of the country's tropical sawnwood export total fall from 46% to 40%. Its overseas sales were worth US$84.2m, against US£119m in 2011 (115,200m3 against 206,800m3).
|
|
Scooped by
Prentiss & Carlisle
August 3, 2012 10:28 AM
|
|
|
Scooped by
Prentiss & Carlisle
May 21, 2012 11:28 AM
|
A new model aims to forecast future logging road development by estimating the value of timber stocks across the Brazilian Amazon. ...
|
|
Scooped by
Prentiss & Carlisle
February 8, 2012 7:49 AM
|
Wood chip exports from Latin America are on track to reach a record high of almost eight million tons in 2011, reports the Wood Resource Quarterly.
|
|
|
Scooped by
Prentiss & Carlisle
November 7, 2016 9:25 AM
|
Cambium Global Timberland has agreed to sell all of the standing timber on its property in Tocantins state to Suzano Papel e Celulose, a Brazilian pulp and paper company. This sale is part of planned realisation of all the AIM-listed company's assets.
The deal to sell the timber of the company's 3R property in the state of Tocantins in central Brazil is expected to generate an income equalling the current book value of the trees, before legal and financial advisory costs.
A deposit is payable within 15 days of the agreement which is expected to be about 20% of the total purchase price, which will be determined after a pre-harvest inventory in early 2017. About 60% is due after the pre-harvest inventory and the balance before the end of 2017 once all the wood has been removed.
|
|
Scooped by
Prentiss & Carlisle
October 6, 2014 2:27 PM
|
Amazonas Florestal, Ltd. has purchased 5 rural properties in the municipality of Borba, State of Amazonas, Brazil. These 5 properties will add approximately 25,000 acres to Amazonas land holdings and will increase the Company's timber inventories by approximately 5%. The addition of these properties brings the Company's total land holdings to more than 100,000 acres, as Amazonas Florestal said in the press release received by Lesprom Network.
Mr. Bruce W. Barren, CEO, stated, " The acquisition in Borba represents an important addition in our sustainable management projects in that once licensed and approved for harvest in 2015, it can potentially add 440,000 cubic metres of tropical hardwood trees to our present inventory and supply upwards of 22,000 cubic metres yearly on a 20 year plan to local mills. We have signed an intent to lease a major production mill in the adjacent area next year that would have the capacity to process the full amount that could become available once the SFMP (Sustainable Forest Management Project) in these lands are approved which we anticipate to take place in the second quarter of next year."
|
|
Scooped by
Prentiss & Carlisle
May 17, 2013 12:18 PM
|
Brookfield Asset Management’s second Brazilian timber fund has hit its $270m target after raising $150m in five months, AltAssets has learned.
|
|
Scooped by
Prentiss & Carlisle
December 5, 2012 9:37 PM
|
Pulp mills and sawmills in Brazil became more competitive in 2012 mostly thanks to a weakening Brazilian Real. Pine sawlog prices in Brazil, in US dollar terms, fell 22 percent in just one year, and prices in the 2Q/12 have been at a level below where they were just before the financial crisis that hit in 2008, according to the Wood Resource Quarterly (www.woodprices.com). *** The recent dramatic price reductions of pulpwood have had the result that the wood costs for Brazilian pulpmill now are among the lowest of all regions tracked by the WRQ, as compared to a year ago when wood fiber costs in Brazil were above the Global Wood Fiber Price Indices (SFPI and HFPI). Since wood fiber costs accounted for about 70 percent of the production costs for pulp mills in Brazil in the 2Q/12, the substantial reduction in pulpwood prices has made the country’s pulp mills more competitive in 2012 relative to other pulp producers around the world.
|
|
Scooped by
Prentiss & Carlisle
July 29, 2012 8:34 PM
|
Ohio Police & Fire Pension Fund, Columbus, committed $25 million to Brookfield Brazil Timber Fund II, confirmed spokesman Eric Eramo.
The commitment is the $12 billion pension fund's fourth to timber; it created a 3% target allocation to the asset class in March 2010. The fund committed $100 million each to Forest Investment Associates and Hancock Timber Resource Group and $50 million to Brookfield Timber Fund V earlier this year.
|
|
Scooped by
Prentiss & Carlisle
March 14, 2012 7:52 AM
|
AAA, an alternative investment advocacy firm, has always seen Brazil as a great place to invest in commodities, such as timber, and in ethical and social funds, through impact investing routes. However, the world is expected to start investing cash in Brazil in droves thanks to the latest figures from the Centre for Economics and Business Research (CEBR).
“Although last year’s 2.7 per cent growth wasn’t enormous, in the grand scale of things, Brazil continues to grow economically when many other top economies are still teetering on the edge of recession” explained AAA’s analysis partner, Anthony Johnson.
He added, “There has rarely been a better time to invest in emerging economies and investors who want to diversify their portfolios could not do better than investing in sustainable forestry in Brazil.
|
|
Scooped by
Prentiss & Carlisle
January 25, 2012 2:58 PM
|
Chairman's Statement
Cambium’s goal is to provide investors with a total return from a diversified timberland portfolio. The period covered by these financials was a difficult one for many timberland owners including Cambium Global Timberland Limited. The Company’s net asset value ("NAV") as of 31 October 2011 is 71 pence per share compared to 78 pence per share at 30 April 2011. A dividend of 3 pence per share was paid during the period. Returns for the period were -5.9%.
The negative impact of revaluations on the appraised value of the portfolio contributed -4.9% of attribution to the return. Primary drivers were an adjustment in the value of the Corrigan property in the United States due to loss from fire, timber value of the remaining property in the United States and land prices in Brazil.
|
