FRA seeks support for new Brazilian forestry fund

A new Brazilian timber investment fund has attracted support from Forestry Research Associates (FRA), the research and analysis consultancy that concentrates on the forestry industry.

Seattle, United States, August 27, 2011 -- A new Brazilian timber investment fund has attracted support from Forestry Research Associates (FRA), a research and analysis consultancy that concentrates on the forestry industry.

The new VBI Timberland Fund intends to raise $350 million through the scheme, which it will then invest in sustainable forestry projects in Brazil. The fund is aiming to put most of the money towards plantations of eucalyptus, a timber that is popular in the manufacture of furniture and can also be used in the steel industry once turned into charcoal.

The fund is being structured over 15 years and has a closed-end structure. Peter Collins, an analyst at FRA, said, “The launch of this fund is great news for the forestry investment sector and is likely to prove popular among those looking for an investment opportunity that is both profitable and ethical.”

The annual internal rate of return being targeted is an impressive 14 per cent and the first closing is expected to be in December 2011. Mr Collins added “FRA welcomes the news that the projects invested in will all either be certified by the Programme for Endorsement of Forest Certification, or by the Forest Stewardship Council.”

The forestry projects will be managed by Brazil Timber and Vision Brazil Investment (VBI) will act as investment manager for the fund. VBI claims the returns should be higher than some funds operating in other countries thanks to a combination of low land prices and high forestry productivity in Brazil.

Greenwood Management is another firm operating a forestry investment opportunity in Brazil. However, Greenwood’s investors are given the chance to make a direct investment in the forested land itself. Their returns are based on the increase in the value of the timber as it grows.

Mr Collins concluded, “Brazil is a great centre of forestry investment due largely to the booming domestic market for charcoal used by the steel industry. Construction firms are busy preparing for the 2014 World Cup and the 2016 Olympics, while the government has all but banned the use of native trees in the production of charcoal in the steel industry."

“These combined make it a good time to be growing non-native trees in Brazil,” he added.

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
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Delay in pre-pack administration changes no surprise says Business Sale Report

The announcement that the changes to the pre-pack administration process are to be delayed until next year has not come as a surprise to many, according to industry experts at the Business Sale Report (BSR).

London, UK, August 27, 2011 -- The announcement that the changes to the pre-pack administration process are to be delayed until next year has not come as a surprise to many, according to industry experts at the Business Sale Report (BSR).

BSR Head of Business Appraisals, Stephen Ideh, said that the changes are necessary, but that April - when the changes are expected to now be implemented - has historically been the favoured month for insolvency-related updates.

"The delay in the pre-pack reform will come as no surprise to many," said Ideh. "There has been heavy debate on the subject for months."

Confirmation of the delay came from the Insolvency Service this week. The changes are set to include giving creditors three days' notice before a company is sold to a connected party or business.

The minister in charge of insolvency, Ed Davey, had previously said that the amendments would be implemented before the end of this year, but an Insolvency Service spokesman said that they had needed to consider all opinions in deciding when to put the changes into force.

"Following discussions with stakeholders, amendments are being made to the Statutory Instrument (SI) by our lawyers," he said. "The SI will not be coming into force by the end of this year and we are now aiming for next year."

Ideh explained that pre-pack administrations - which involve marketing a business prior to it entering administration and selling immediately thereafter, sometimes back to its directors or previous owners - are considered to be very convenient tools by insolvency practitioners. He said that giving creditors more time to have their say, however, is a welcome move.

"Insolvency practitioners claim the procedure often helps limit job loss and maintains customer and supplier confidence, which can often be damaged by liquidation or asset sale," Ideh pointed out. "On the other hand many creditors view pre-packs as an easy escape for directors who have failed to meet up with their repayments and through the pre-pack deal, are now allowed a new lease of life buying the business back with limited liability and a reduced company debt owed."

"The question arises as to whether those ultimately responsible for the company’s demise are best suited to run the company going forward. In our opinion creditors deserve more time to have a say in the matter."

-Ends-

Business Sale Report is the leading independent provider of mid-market business for sale listings information, supplying subscribers access to a comprehensive database of companies for sale with an annual turnover of between £200,000 and £10 million. The Business Sale Report also runs a daily email alert service that notifies subscribers about distressed business opportunities. These include businesses that have just appointed administrators and companies that have been issued with winding-up petitions.

Media Contact:
Stephen Ideh
Business Sale Report
167 Oakhill Road
Putney
London SW15 2QW
Tel: 020 8875 0200
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AAA speaks out in support of China red wine investment fund

Reports of China’s first red wine investment fund have been welcomed by Alternative Asset Analysis, an organization that promotes alternative investments.

Boston, MA, USA - August 27, 2011 -- Reports of China’s first red wine investment fund have been welcomed by Alternative Asset Analysis, an organization that promotes alternative investments.

In a move that reflects the growing appetite for the most alternative of alternative asset classes, the DeRouge Fund plans to raise $156 million through its investment in fine red wines.

A consultancy, Z-Ben Advisers, claims that the new fund is a sensible response to the growing demand from the affluent Chinese population for a chance to invest in assets that are much less affected by the performance of the equity markets, and often the strength of the economy itself.

AAA said that this type of super-alternative investment is growing in popularity as more people realise the money to be made from such investments. Anthony Johnson, AAA’s analysis partner explained “Similar funds based out of London have seen their returns rise by almost 70 per cent over the past eight years, so it’s clear that returns can be strong despite the risk being lower.”

High value storable good that are in limited supply, such as red wine, are the latest alternative asset class to hit the market and it is proving an interesting and popular choice among those committed to reducing their exposure to traditional investments.

Mr Johnson added, “More and more people in China are seeing their cash reserve increase as their economy grows. However, they are also aware that the global economy is anything but stable and that a safe haven for their cash is extremely valuable.”

AAA advocates investments in a variety of interesting alternative assets classes, including real estate, impact investment projects and sustainable forestry in emerging economies, such as Greenwood Management's forestry project in Brazil. “You don't need to look too far these days for an investment opportunity that is as ethical as it is profitable,” stated Mr Johnson.

About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.

Media Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
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