A US$150m investment in eastern Europe will help Phaunos Timber Fund Ltd increase its foothold in “this growing emerging market”.
The closed-ended investment company is to join forces with Scotland’s Aitchesse Ltd to undertake a joint venture that will see it invest in forestry and related assets across the region,
It is expected that the first investment could be made within the second quarter of 2008.
Both Phaunos and Aitchesse already have operations in the area: Phaunos has a stake in wood pellet processing facilities in Serbia, while the Argyll-based forestry and woodland investment vehicle has an office in the region and 15 areas of woodland containing mixed temperate hardwods and commercial softwood species.
“The application of Aitchesse’s proven forestry investment skills to the traditionally managed forests in eastern Europe will be an exciting step in the right direction for viable sustainable forestry and increase the fund’s exposure to this growing emerging market,” said Keith Oates, chairman of Phaunos’ board of directors.
As part of the deal, Phaunos will be given access to Aitchesse’s office and workforce in the region, as well as its legal and network issues experience in eastern Europe.
