Key Post Investment in Irish Forestry Funds

Aidan1977

Registered User
Messages
5
Following an extensive and thorough process over a four-year period the Directors of the Tenth Forestry Investment Plan Plc can now confirm that the sale of the company’s forestry portfolio to a European purchaser has completed. During this period the Directors engaged with a number of interested parties, with the final offer received from the successful bidder being in excess of previous offers from other interested parties. The Directors are satisfied that they have achieved the best possible price for the forestry portfolio.

The European purchaser will manage the forestry assets with their own management team and the Directors of the Tenth Forestry Investment Plan Plc will no longer be involved in managing the portfolio.

The company’s auditors will now prepare a Statement of Affairs and following completion, a dividend distribution will be declared and Preference Shares will then be redeemed shortly thereafter by the company. Until such time as the Statement of Affairs is completed we will not be in a position to advise the level of dividend distribution.

Preference Shareholders will be issued with a single cheque which will be inclusive of the dividend distribution and the Preference Share redemption. The Directors expect to have the combined dividend distribution and Preference Share redemption cheque to investors prior to Christmas.

This is a major international vote of confidence in the future of the Irish forest industry, securing employment for those operating across the sector, from forest establishment companies to timber processors and we wish the new purchaser well in their future endeavours.

Yours sincerely,

Paul Brosnan
Chiarman
 

11Shareholder

Registered User
Messages
9
Following an extensive and thorough process over a four-year period the Directors of the Tenth Forestry Investment Plan Plc can now confirm that the sale of the company’s forestry portfolio to a European purchaser has completed. During this period the Directors engaged with a number of interested parties, with the final offer received from the successful bidder being in excess of previous offers from other interested parties. The Directors are satisfied that they have achieved the best possible price for the forestry portfolio.

The European purchaser will manage the forestry assets with their own management team and the Directors of the Tenth Forestry Investment Plan Plc will no longer be involved in managing the portfolio.

The company’s auditors will now prepare a Statement of Affairs and following completion, a dividend distribution will be declared and Preference Shares will then be redeemed shortly thereafter by the company. Until such time as the Statement of Affairs is completed we will not be in a position to advise the level of dividend distribution.

Preference Shareholders will be issued with a single cheque which will be inclusive of the dividend distribution and the Preference Share redemption. The Directors expect to have the combined dividend distribution and Preference Share redemption cheque to investors prior to Christmas.

This is a major international vote of confidence in the future of the Irish forest industry, securing employment for those operating across the sector, from forest establishment companies to timber processors and we wish the new purchaser well in their future endeavours.

Yours sincerely,

Paul Brosnan
Chiarman

The one serious flaw in the email is that it does not mention any monetary values so we are none the wiser as to how much or little any if us have made on our investments. I think their phone lines are going to be very busy this week with everyone asking the same questions. How they thought that this email would suffice is beyond me. Only that I saw the email after office hours, I would have been straight on to them. Just have to wait till the morning now. But sure, aren't we all so good at waiting at this stage.....
 

Lesh37

Registered User
Messages
16
Well said 11Shareholder,

"The European purchaser will manage the forestry assets with their own management team and the Directors of the Tenth Forestry Investment Plan Plc will no longer be involved in managing the portfolio".

Does the above statement reek of "we're washing our hands of this". Honestly if I get a cheque that equates to original investment I'll be chuffed, but I'm not holding out any real hope. I honestly think if the dividend was going to be significant, why would they not mention it in the correspondence. This just smells of the same nonsense from them that we have had to endure over the past.....................

I remain hopeful but wary.
 

Galway21

Registered User
Messages
13
It is very disappointing that Mr. Brosnan in his posting above did not actually mention how much the forestry was sold for so that we could estimate what type of return we could expect.
 

10th Forrest

Registered User
Messages
34
Does the above statement reek of "we're washing our hands of this".
Nope, they intended to sell after 10 years, in the case of the 10th fund they have done it after 11 but its not a case washing hands. Merely selling assets.

As for the lack of a number,until the final administration is done they can't actually give one, as much as one might like them to state the return they would still be estimating it and if they did that people would then complain they got it wrong even if a euro out.
 

Dair Ghaelach

Registered User
Messages
6
I have received no communication from IFS. However, I was sent an update from a published secondary source, Cantor Fitzgerald's weekend press summary, which prompted me to search for the original news report.

I can't post a link, pdf or jpeg, so all I can do is recommend that you Google "Forestry investors out of the woods after years of uncertainty".
 

10th Forrest

Registered User
Messages
34
Forestry investors out of the woods after years of uncertainty".
Sunday Times article, behind a paywall so.

edit that the opening paragraphs are free to read

THOUSANDS of retail investors are set to recover the combined sum of €30m that they put into woodlands, after the sale by Irish Forestry Funds (IFF) of 10,000 acres of semi-mature plantations to a European private-equity fund.

The deal ends years of uncertainty. Some of the investors have been waiting since 2012 to get their money back. IFF confirmed that those who had invested between 2002 and 2005 would recover, before Christmas, their cash plus a tax-free return — although returns will fall far short of the 8.5%-9.6% a year that had been projected.

The investments were made in nine separate unregulated funds, from the fourth forestry investment plan in 2002 to the 12th plan in 2005. The woodlands held under all of these plans have been sold as a single lot.
 

cremeegg

Frequent Poster
Messages
3,082
It seems to me that in a few years we will be reading about the huge gains made by European private-equity fund on their investment in semi mature Irish forests. Buying below true economic value from distressed Irish sellers. I suggest that people read post 86 in this thread by Treacle.

This has been an excellent thread giving a great insight into the economics of Forestry and the mind set of investors.
 

sahd

Frequent Poster
Messages
768
It is very disappointing that Mr. Brosnan in his posting above did not actually mention how much the forestry was sold for so that we could estimate what type of return we could expect.
It wasn't hime - just a copy and paste of an email.
 

dereko1969

Frequent Poster
Messages
2,657
My girlfriend was sure she has invested in one or more of these but she can only find a letter referring to the 3rd forestry fund in 2012, anyone know what happened with that one?
 

ignorant1

Registered User
Messages
10
My girlfriend was sure she has invested in one or more of these but she can only find a letter referring to the 3rd forestry fund in 2012, anyone know what happened with that one?
3FIP
2012 Jul 3 Letter from them "sale agreed", "due diligence etc" "several weeks to distribution"
2012 Aug 26 1st cheque, 1183 Euro
2012 Oct 1 2nd cheque 2539 Euro

My original investment (in 2001) was £2000 (4 shares).

Did your girlfriend change her address without informing them? Does anyone know what happens in that case?
 

dereko1969

Frequent Poster
Messages
2,657
Her parent's address was used at the time and they still live there. She can't remember getting anything but she'll check this weekend. Thanks for the info.
 
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S2K

Registered User
Messages
8
I followed up again today to ask for more information on the likely return to shareholders. I was told under no circumstances would the Directors provide this or even an estimate. I find this unacceptable. While our shareholder status is non-voting, that does not excuse the Directors of their fiduciary duties. They plan to issue cheques without disclosure of the return obtain & the bid process & other offers on the table. I for one have no way of being sure that the deal agreed is the the best one on the table or in the best interests of the preferred.
 

jaja95

Registered User
Messages
6
I followed up again today to ask for more information on the likely return to shareholders. I was told under no circumstances would the Directors provide this or even an estimate. I find this unacceptable. While our shareholder status is non-voting, that does not excuse the Directors of their fiduciary duties. They plan to issue cheques without disclosure of the return obtain & the bid process & other offers on the table. I for one have no way of being sure that the deal agreed is the the best one on the table or in the best interests of the preferred.
What you think is irrelevant, shareholders have no say here, we are lucky to get any return back at all, final judgement will be made when cheques arrive, im glad this saga is coming to and end.
 
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