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Business

FRA: Irish Forest deal shows overseas Timberland Investment Market is ‘Healthy’

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The news that an Australian investor has bought a large piece of forested land in Ireland as an investment has been cited by FRA as evidence that the forestry investment industry is still proving strong.

Bainbridge Island, WA, Septemeber 06, 2012 – The news that an Australian investor has bought a large piece of forested land in Ireland as an investment has been cited by Forestry Research Associates (FRA) as evidence that the forestry investment industry is still proving strong.

“The news that the Australian investor has spent nearly EUR4 million on the Irish forest land shows that investors are willing to invest overseas when they identify a decent forestry investment option that could earn them strong returns in the medium or long term,” stated FRA’s analysis partner, Peter Collins.

The 921 acres of forest was planted over a period of 30 years by Irish Forestry Services Asset Managers. It has now been bought from the asset managers by the Australian investor. The portfolio of forest land is located in six Irish counties in 20 locations, including in Clare, Mayo and Leitrim.

The sale to the Australian businessman was secured after Irish Forestry Services marketed the portfolio abroad to ensure they stimulated as much interest in the asset as possible. DTZ Sherry FitzGerald’s Fintan Tierney handled the sale and explained to The Irish Times: “We received over 165 enquiries from Irish and overseas investors, some of them for parts of the portfolio and others for the entire investment.”

FRA said that the sale also demonstrated how investors in plantations can see returns sooner than they may expect. Hundreds of people who invested in The Third Forestry Investment Plan saw returns of 46.6 per cent, tax free, as a result of the sale.

FRA is a keen advocate of forestry investment through firms like Greenwood Management and promotes this as a green option for those who want to invest in a tangible asset class that is lower risk than investing in equities or bonds. Forestry returns have typically outperformed the equity markets and inflation over the past few decades.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
United States
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

FRA Welcomes Australian Carbon Forest EU Link-Up

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FRA have welcomed news that Australia’s carbon forests are being linked to the EU’s ETS to help encourage investment in the carbon offsetting tool.

Seattle, United States, September 4, 2012 — Forestry Research Associates (FRA) have welcomed news that Australia’s carbon forests are being linked to the EU’s ETS to help encourage investment in the carbon offsetting tool.

The move is also being greeted warmly by the country’s carbon offsetting pioneer, Greenfleet, which said that the change will bring plenty of credibility to its carbon forest scheme. Greenfleet CEO, Sarah Gipton, explained, “It brings greater simplicity to the scheme; and linking to the more established market means Australia will benefit from the EU experience and Australian carbon project developers can tap into a larger market.”

She went on to add: “We are confident that investment in Australian carbon forests that offer additional biodiversity benefits will continue to rise as liable parties build their carbon management portfolios.”

Ms Gipton issued a statement talking about the relatively new asset class of investing in carbon offsetting. She explained that most savvy investors will take the ‘portfolio approach when making investments to deal with the risks. This is the same as any other asset class – it’s always a good idea to hedge your bets with a diverse portfolio, claims FRA’s analysis partner, Peter Collins.

Greenfleet is a forest abatement organization that helps businesses to offset their carbon emissions by planting trees. FRA supports this kind of project and also investment in forestry via sustainable plantations, which can also help to businesses and individual investors to offset their carbon emissions – while making healthy returns.

“Investing in plantations through forestry managers like Greenwood Management, which runs plantations in Brazil and Canada, is a great way to give a little back while making your cash work harder for you.”

Forestry investment tend to perform better than stocks and bonds and the demand for timber and charcoal products is rising off the back of growing economies of India, China and Japan.

About Forestry Research Associates

Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.

Media Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

FRA welcomes The Campbell Group’s purchase of Australia timber

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A US timber investment manager is leading a buyout of a large amount of harvested timber in South Australia, in a move that has been welcomed by FRA.

Bainbridge Island, WA, September 04, 2012 – A US timber investment manager is leading a buyout of a large amount of harvested timber in South Australia, in a move that has been welcomed by Forestry Research Associates (FRA).

The research and analysis consultancy claims that the Campbell Group (TCG), a US-based investment management firm, is offering a good price for the timber that will be harvested in the region in the future.

South Australian government treasurer, Jack Snelling, said that the offer of the future timber investment attracted some very good offers from investors all over the world. Mr Snelling explained that although there were several good offers, TGC’s was the winner. He said, “TCG put forward the best proposal which included a very strong price.”

TCG controls some three million acres of timberland around the world, making it one of the world’s largest timber investment companies. Its chairman, John Gilleland, said that it would remain committed to safeguarding the forestry industry in South Australia. He said, “We are very pleased to have secured the rights to manage what is one of the highest-quality timber plantations in Australasia.”

The move underlines the ongoing demand for sustainably produced timber, according to FRA’s analysis partner, Peter Collins. He said, “Here at FRA, we are keen to promote forestry investment – through buying up plantation land – to those who night be looking for a more tangible investment option in response to the economic crisis.”

FRA claims that investing in plantations that are managed by a forestry management company, like Greenwood Management, for example, is a good option for people who want to try out timberland investment. “Investing in managed plantations means investors get all the rewards and benefits of a low-risk asset class, without the hassle or cost of having to buy their own plot of forest and manage it themselves,” added Mr Collins.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

FRA Welcomes Georgia Sustainability Ruling

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A new executive order signed by Gov. Nathan Deal in Georgia will ensure that the region’s forests are certified as ‘green’ in a move that has been praised by FRA.

Bainbridge Island, WA, August 23, 2012 – A new executive order signed by Gov. Nathan Deal in Georgia will ensure that the region’s forests are certified as ‘green’ in a move that has been praised by Forestry Research Associates (FRA).

The signing of the order is also intended to help the region boost the number of new buildings that are awarded LEED green building certification. The move will expand the definition of sustainable timber to include timber form forests certified under the American tree Farm System and the Sustainable Forestry Initiative. Until now, only buildings made from timber certified by the Forest Stewardship Council could be eligible for LEED green building certification under the US Green Building Council.

As well as being supported by FRA, which advocates sustainable forestry in all its forms, the move has also won praise from the Georgia Forestry Association. The Association’s president, Steve McWilliams, said, “The governor has taken what I think is quite a stand for thousands of private timberland owners in the state by saying that we’re not going to let our wood be devalued by a policy wherein the end result of the quality of the product that goes into the building is substantially the same.”

FRA agrees that timber from forestry that has been managed sustainably should always be used as a preference to timber that has been sourced from non-sustainable sources. It also agrees that sustainability should not just be limited to FSC certification and that green building policies should be opened up to allow for other accreditation systems, such as those held by many of Georgia’s forests.

“Sustainability should not just mean ‘FSC-accredited’”, stated FRA’s analysis partner, Peter Collins. He added, “Any timber from forestry that is managed sustainable, through managed plantations such as those operated by Greenwood Management in Brazil and Canada, for example, should be usable in green construction projects.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

Timber Prices Growing “Thanks to Asian Housing Boom”, says FRA

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Timber prices are increasing in the US because the demand for lumber continues to grow in Asia, according to FRA and research from the Claymore Beacon Global Timber Index.

Bainbridge Island, WA, August 22, 2012 – Timber prices are increasing in the US because the demand for lumber continues to grow in Asia, according to Forestry Research Associates (FRA) and research from the Claymore Beacon Global Timber Index.

The figures show that log exports from the US to Asia increased by 5.2 per cent in the first three months of 2012 and analysts believed that the boost to demand came as a result of the booming global housing market.

“Growing economies, like China and India, are all hard at work building new homes for people increasingly moving into urban areas to take the newly created jobs in these regions,” explained FRA’s analysis partner, Peter Collins. “Lumber is one of the main building materials used in these countries and they are shopping millions of tons of logs in form elsewhere to meet demand, which is great news for timber and forestry investors worldwide.”

An example of the house-building boom in China comes from the latest figures from Xinyuan Real Estate Company, which reported growth of 73.53 per cent for so far in 2012.

Now is a great time to invest in timberland, according to FRA and other forestry investment experts. The market for housing in the US is also looking to be improving, which will mean the domestic demand for timber logs will also increase over time.

“Timber is a great medium to long-term investment solution for those who want a low-risk portfolio,” stated Mr Collins.

Investing in forestry through sustainable plantation projects, such as those run by firms like Greenwood Management in Brazil and Canada, is a popular option. These plantations investment plans allow people to directly buy forestry land with as little as $10,000. The plantations are already in operation and the cyclical growing model means returns start to be seen by investors before their specific trees come to maturity.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

Investment expert joins FRA in promoting Green investments

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Increasing green investments in asset classes such as forestry will help investors and will also help to boost the creation of a sustainable economy, according to an experts US-based money manager and FRA.

Bainbridge Island, WA, August 16, 2012 – Increasing green investments in asset classes such as forestry will help investors and will also help to boost the creation of a sustainable economy, according to an experts US-based money manager and Forestry Research Associates (FRA).

Quoted by KMS Baltic, Jeremy Grantham, the head of Boston-based investment firm GMO said that investing in green asset classes should be encouraged, In response, FRA, A research and analysis consultancy, has agreed, stating, “investing in sustainable forestry and other green asset classes can help developing countries to start to reap the benefits of a truly global sustainable economy.”

The statement from Mr Grantham came as part of a letter to his GMO clients last week. As a result of his views on the importance of green investments and the rising price of food, in particular, GMO is changing its focus to include around 15 per cent investment in forestry and agriculture land from now on.

His letter stated, “You can confidently expect that if resource prices steadily rise in real terms, then resource stocks should outperform the market.”

FRA’s analysis partner, Peter Collins, said that the increased use of materials like timber as a fuel is also a reason to invest more heavily in these resources. “As energy prices continue to rise and fossil fuels become more scarce, the demand for biomass energy, which include crops and wood chips, is bound to rise further and further. Investing in sustainable sources for these resources should pay dividends in the future.

FRAs support sustainable forestry investment through plantation projects such has the one run by Greenwood Management in Brazil. A growing number of investors are opting for forestry investments as demand for timber grows as a result of renewable energy demand and demand for timber as a construction material in China, India and other emerging economies.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

FRA Welcomed USA Today Endorsement of Timber Investment

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FRA has welcomed a new article published by USA Today predicting a boom in timber investment returns if the real estate industry returns to a strong position.

Seattle, United States, August 9, 2012 — Forestry Research Associates (FRA) has welcomed a new article published by USA Today predicting a boom in timber investment returns if the real estate industry returns to a strong position.

The housing collapse in the US brought with it a fall in timber prices. Now things are looking up again and, as a result, timber stocks are looking rather attractive once more, according to USA Today’s John Waggoner. Since timber futures prices’ lowest spot in early 2009, they have increased by an impressive 93 per cent. Although this is slightly less than the recovery in the Standard & Poor’s 500 index, the improvement in the real estate market indicates a good reason to buy up timber REITs.

In the past 12 months, new home starts have jumped by 23 per cent and the fact that housing is now a lot more affordable than the last time housing starts increased, suggests that the turnaround will last longer and be more notable this time, claims FRA.

The forestry investment advocacy group supports the USA Today article, claiming that timber REITs are very attractive, but that there are also other options for those who are interested in investing in timber. “We promote investment in sustainably managed plantations, such as those operated in Brazil by firms like Greenwood Management,” stated FRA’s analysis partner, Peter Collins.

These plantations allow investors to directly invest in a piece of forestry land for as little as $10,000, which is a lot less than is involved when buying forestry independently. Then, firms like Greenwood manage these plantations for the owners and start paying returns to investors as soon as money starts coming in from any mature trees on the entire plantation.

Mr Collins claims that this option mean that investors enjoy the diversification benefits of forestry investment, but also get to see returns sooner than they would through other direct investment routes.

About Forestry Research Associates

Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.

Media Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

FRA Endorses Harvard’s support for Forestry Investment

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Harvard University’s investment manager has spoken out in favor of timberland investment as a way to make cash while investing in an ethical cause, in a move endorsed by FRA.

Bainbridge Island, WA, July 31, 2012 – Harvard University’s investment manager has spoken out in favor of timberland investment as a way to make cash while investing in an ethical cause, in a move endorsed by Forestry Research Associates (FRA).

Harvard Management Company’s chief executive, Jane Mendillo, spoke at the CNBC Delivering Alpha Conference in order to voice her support for investing in natural resources. This is according to a report in The Australian.

The Antipodean newspaper was particularly interested in the endorsement from Harvard as the timber the legendary university has invested in is growing in New Zealand.

FRA, is a research and analysis consultancy specializing in forestry investment. FRA’s analysis partner, Peter Collins, said, “We rarely hear from Harvard Management Company, but when we do, they often speak about their investment in natural resources and the gains they have made from this investment strategy,”

The company manages the not insignificant $32 billion Harvard endowment and purchased forested land measuring 170,000 hectares in central North Island in 2003. At the time, the forestry investment industry in New Zealand wasn’t looking good thanks to high export costs and a huge preference for Russian softwood in China. Ms Mendillo said that Harvard’s investment came at a good time, when forestry investment were less fashionable than they are now. “Natural resources is our favourite area and it happens to be a favourite area where we feel that we may have an advantage as an early entrant into the asset class, “ she explained.

Mr Collins added, “Harvard got a good price for their timberland as the investment was made before people learned what a great hedge against inflation and the strong returns timberland can generate over time.”

FRA supports a number of forestry investment projects and particularly investment in non-native plantations in Brazil through firms like Greenwood Management. “Investing in trees provides a great mid- to long-term option for risk-averse investors,” added Mr Collins.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

Lumber ‘Treasure Hunts’ illustrate Demand for Timber, claims FRA

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FRA has claimed that the modern-day timber scavengers and ‘treasure-hunters’ prove that timber is growing in demand and value.

Seattle, United States, July 25, 2012 — Forestry Research Associates has claimed that the modern-day timber scavengers and ‘treasure-hunters’ prove that timber is growing in demand and value.

Reports into the increase in people searching for lost tropical rainforest timbers that fell to river and sea beds years ago, has prompted experts to use this as evidence of the ongoing demand for timber. A recent report in the Bangkok Post about the activity shows that there is a growing number of timber ‘treasure-hunters’ who search for long-lost logs of timbers no longer widely available due to logging restrictions.

Peter Collins of FRA, the research and analysis consultancy, said, “Many of these so-called treasure hunters are in operation in South-East Asia where a large number of exotic hardwood logs were lost during the period when logging of rainforests was more common and legal, back in the 1980s and 1990s.”

The article in the Bangkok Post described how the exotic lumber is in demand in Asia in particular, where it is used for the construction of everything from bar tops to pianos.

“The populations of many Asian countries are growing increasingly wealthy and want fine things made of beautiful timbers. However, the logging of many of these timbers is now illegal and the only way to get hold of them is to rescue logs that have been sitting on river beds for several years,” explained Mr Collins. He added, “The alternative, of course, is to source timber from sustainable plantations, such as those run by firms like Greenwood Management in Brazil and Canada.”

FRA supports sustainable timber plantations that allow investors to buy up sections of timberland while receiving returns from when the timber is harvested, processed and sold on. Timber demand in general is high at the moment, particularly in China, India and Japan, which is making timberland investment even more attractive.

About Forestry Research Associates

Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.

Media Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

FRA claims Romania is increasingly Attractive to Ethical investors

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The latest economic figures to come out of Romania show that the country’s forestry sector is bucking the overall trend for recession, by growing by more than 4 per cent.

Bainbridge Island, WA, July 13, 2012 – The latest economic figures to come out of Romania show that the country’s forestry sector is bucking the overall trend for recession, by growing by more than 4 per cent. Forestry Research Associates (FRA) claims that this news will attract more foreign investment into the forestry industry in Eastern Europe.

FRA, a research and analysis organization, is a keen advocate of sustainable forestry projects and believes that investing in forestry can be a great way of diversifying a portfolio. “Forestry has a low correlation with equity markets and can also be a good option to offset inflation,” stated FRA’s analysis partner, Peter Collins.

In the first quarter of 2012, Romania’s GDP fell slightly, indicating the country is in recession, following a period of growth in 2011. However, the figures released by the country’s Statistics Institute, show that the forestry industry grew by 4 per cent. The growth in the forestry market and the fact that most analysts believe that the current slump is just a blip, means that foreign investors are likely to remain interested in Romania.

“Ethical investments, such as investing in plantation and sustainable forestry projects all over the world, are proving much more popular following the global economic crisis.

“We believe that countries like Romania will begin to attract more and more investment from foreigners in the coming year or so,” added Mr Collins.

Bogdan Ion, Ernst & Young’s managing partner, told Romanian Business Insider: “We see more and more investors attracted by the renewable energy sector. More privatizations are planned in the future, encouraging investors worldwide to look to our country.”

FRA supports a number of forestry projects run by firms like Greenwood Management in Brazil and elsewhere. “Investing in plantations is a good way to gain something tangible in exchange for your cash and can also help to prevent deforestation,” concluded Collins.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com