Key Post Investment in Irish Forestry Funds

TomasForest

Registered User
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1
Forestry Investment

I too have a share in the 4th plan that's long past the Liquidation date & am getting the same friendly words from IFS . Can anyone advise if we can get help from any Government agency ?
 

staunton

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58
Just received my vague letter relating to the maturity of the 9th investment plan. Was hoping for a cash boost this year although the letter doesn't hold out much hope. Having read this thread I am worried about getting zero. Has any other plans paid out beyond the 2nd. Sounds like I've been suckered in by a pyramid scheme.
 

jafar

Registered User
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1
I've been waiting since May 2013 when the Sixth plan matured. Getting nothing but six- monthly vague emails about trying hard to sell the portfolio. Anyone think it's time to contact a solicitor?
 

extopia

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3,105
Here's the latest communication about the Sixth Forestry Investment Plan, which was supposed to return money to shareholders in 2013:

_________________

Dear X

The Forestry Investment Plans were designed for a period of approximately ten years after which period the forestry assets were to be sold and the proceeds distributed to the shareholders. This process operated successfully until the market became fundamentally illiquid in 2012 as discussed in previous communications.

In 2012 the forest portfolio of The Third Forestry Investment Plan Plc was sold to an Austrian investor. The experience in that transaction was that the Irish market failed to deliver any serious bids during that process. This necessitated the directors to change their focus to continental European investors. However, as market conditions are showing signs of change, we are also now testing the Irish market again by placing portfolios on the Irish market to test domestic investment appetite.

As a result of the continuing delays in maturing the forest portfolios, the directors' focus is now entirely on developing opportunities that may result in a successful sale of the assets. This is our core focus - to successfully mature these forest portfolios for you, our shareholders, and in doing so generate a return for you that is reflective of the true value of your forests.

We have received bids for the portfolio over the past year. However, these bids for the forestry assets have been rebuffed as they were blatantly attempting to capitalise on broader European economic problems by correlating them to the value of your forests. Our decision has been independently confirmed by independent valuations of the assets. Ultimately, the profit from the sale of the portfolios is for the benefit of the shareholders of the company.

We are holding firm in our approach to ensure that the new prospective investors do not gain unfairly at the expense of the existing investors by acquiring these valuable assets at an amount which is less than fair market value. The easiest route for the directors to have taken would have been to accept any one of the bids received and distribute the proceeds to the shareholders. This action would have removed the burden of responsibility on the directors in terms of accepting "market conditions" as the basis for sale as opposed to insisting on "fair value". However the directors remain fundamentally committed to ensuring that we obtain the best possible result for our shareholders who have entrusted us with their investment over the past decade and beyond. We do not take our responsibilities lightly and our duty of care to our shareholders remains the sole focus for the directors which I believe is recognised by our shareholders.

We will continue to keep you updated on a six-monthly basis or sooner should we achieve our objective of arriving at an agreed sale of the portfolio. Thank you for your continued patience.

Yours sincerely,

Paul Brosnan
Chairman
 

10th Forrest

Registered User
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33
Hi all

Was aware of this thread topic for some time so I thought I'd give an update with respect to one investment plan.

I have several shares spread over 4 or 5 Forestry Plans, the first of them to mature - the 10th IFS, did so on October 27th. I received a letter from the bosses office explaining about market liquidity difficulties etc but that negotiations are ongoing with continental buyers.

At the weekend (after a month) I fired off an e-mail to sound them out and today was told that negotiations are on-going to sell the company's assets and that bids are being submitted and they expect to be "in receipt of all awaited bids in the coming weeks".

Obviously nothing certain but it sounds like there is movement, obviously I have no idea about previous Plans
 

markowitzman

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936
Email received.

Financial Statements for The Tenth Forestry Investment Plan Plc
Tue, 23 Dec, 2014 14:41
THE TENTH FORESTRY INVESTMENT PLAN PLC
Eblana House
Eblana Avenue
Dún Laoghaire
Co. Dublin

Tel: (01) 2841777 Fax: (01) 2845195

Email: info@irish-forestry.ie
www.irish-forestry.ie

Company Registration No. 389120

Our Ref:
December 23rd 2014
Chairman’s Letter
Dear

I have much pleasure in presenting the financial statements of The Tenth Forestry Investment Plan Plc for the year ended 31st May 2014. As you opted to receive your financial statements by email they are now available to download at the following link:
http://www.irishforestry.ie/pdf/2014/10FIP Accounts WEB 31-05-2014.pdf

As you are aware, the directors have been seeking a purchaser for the company’s forests. Over the past two years the Directors have steadfastly refused to agree to the sale of the company’s forests on terms which disadvantage our shareholders. We are now pleased to report that we have managed to attract two interested parties currently engaged in a due diligence process on the forestry portfolio both of whom have given an indication that they are prepared to proceed in line with what the Directors deem to be within the “fair value” range. Both parties have indicated that they are interested in acquiring multiple portfolios on terms which are reasonable and fair to both sides and consequently we are advancing our discussions with them.

The Forestry Investment Plans were designed for a period of approximately ten years after which period the forestry assets were to be sold and the proceeds distributed to the shareholders. This process operated successfully until the market became fundamentally illiquid in 2012 as discussed in previous communications. This has been a difficult period in which to market all physical asset classes including forestry and we remain extremely cognisant of the immediate cash needs of our shareholders who have waited patiently whilst we have sought and identified potential purchasers, predominantly from abroad, as liquidity in Ireland simply has not existed.

Your forest portfolio continues to perform well as indicated by the independent forest consultant’s report in the notes to the financial statements and the additional biological growth of the portfolio increases its ultimate value.

While it remains too early in our discussions to give firm timelines for the completion of the sale of the forestry, a due diligence process has commenced that has seen external forestry experts appointed by one of the prospective purchasers to review the forestry assets. If agreement can be reached through the remaining negotiations we will seek to complete the sale at the earliest opportunity in 2015 and issue the proceeds to you as soon as possible following completion of that sale.

We will continue to keep you updated as we progress and pursue a successful outcome to the negotiations. Thank you for your continued patience.

Yours sincerely,

Paul Brosnan
Chairman
 

10th Forrest

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33
Does anyone have information on the status of the other matured Forestry Investment Plans that are not yet sold?
 

extopia

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3,105
Got the same letter as markowitzman, except it was in relation to the Sixth Forestry Investment Plan. So obviously they are trying to sell the entire matured portfolio to one or both of these potential investors.
 

10th Forrest

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33
As I suspected, I hope they are also agreeing first refusal deals for the rest of the Forestry Investment Plans yet to mature with the prospective buyers.
 

extopia

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3,105
Well I hope they are trying to get a good deal to liquidate the already matured funds and plans. This shouldn't be affected by attempts to get a package deal for yet-to-mature FIPs. The extent of the "forest portfolio" being looked at by these prospective buyers is of course unclear.
 

frankde

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60
Anyone heard anything?
I am also waiting on the 10th, I heard a buyer was checking....and the statement "advanced negotiations"

Also does anyone have info on the when the 8th and 9th plans actually released money to share holders and what were the actual returns?
 

10th Forrest

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33
Looking at the Irish Forestry website shows that 8th/9th plans are unsold, it seems as if they are looking to sell all the outstanding plans in one go to one of the current bidders. Quite what is taking so long I dunno, they've been in negotiations since December.
 

frankde

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60
Looking at the Irish Forestry website shows that 8th/9th plans are unsold, it seems as if they are looking to sell all the outstanding plans in one go to one of the current bidders. Quite what is taking so long I dunno, they've been in negotiations since December.
ok thanks for the update, guess will just have to wait
 

S2K

Registered User
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8
First time poster.

I've been in communication with these guys now for over a year looking for regular updates and it is like pulling teeth. I have a number of concerns:

1. The due diligence process is outlandishly long. It has been explained to me that this is because the fund managers are looking to sell off all funds and not just the fund I'm invested in. Given the relatively small value of each fund, I don't buy this as a legitimate excuse.
2. The acceptable rate of return that the Directors are willing to accept has not been indicated. My concern here is that the actual return will be far below the proposed return and the Directors are not acting in the best interest of the shareholders - see point 3.
3. I understand confidentiality exists, but no assurances that the proposed purchasers of the funds (if they exist) are unconnected in any way to the existing fund managers have been given. This to me is unacceptable particularly in understanding whether a fair return will be achieved.
4. Shareholders are not been kept in the loop. I keep having to contact directly and the responses I receive are vague and unhelpful. I keep requesting regular updates and encouraging the fund managers to publish updates (they seem to believe sending letters to shareholders outside of every 6 months will drive up running costs!!!!). Clearly they haven't heard of the internet!

I'm posting because I think the best way to resolve these issues is through shareholder action. If more shareholders are following up and demanding the same information, the fund managers will have to heed and act. The fund managers can be contacted via the below:

info@irish-forestry.ie
Tel: +353 (0)1 2841777

Fax: +353 (0)1 2845195

The environment now more than anytime in the past 8 years is ripe for selling these assets and realizing a decent return for the shareholders.

Shareholder action is the way forward.
 

Aidan1977

Registered User
Messages
5
Also waiting on 10th plan, getting vague email responses only. Worried!

Has anyone actually ever saw any money returned from these guys??
 
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