Big Week For Timberland
Next week is a big week for Wells Timberland. It needs to have its mezzanine debt down to $90 million by August 29th, and it may have its first capital infusion from its new German fund a day or two before. I don't think it will have the capital to reach the $90 million without the German infusion. If the German capital comes up short - I am guessing Timberland needs $10 million to $20 million - Timberland's discussion with Wachovia should be interesting.
4 comments:
I remain dumbfounded that none of the "business" press has chosen to cover this story. I would love to see someone interview Leo Wells and ask him when the common stockholders can count on getting a dividend. I have been watching several large tracts owned by Wells near my home. They should have been spending money for site prep for replanting but they obviously can't afford it right now. This will cost more later.
That is simply not true. If you read what is really going on you will see that they site prepared and planted 2.5 million seedlings last year and are doing more this year. I know they just recieved their SFI Certification and SFI would not allow them to do what you are saying.
As the really "smart" people have been saying for years. This is a clear example of raising too much money and having to constantly push it into the market, always trying to find new and inginuitive ways to spend. What does a Real Estate Co know about Timberland???? How many times do these people have to screw up before advisors start to realize whats really going on? Leo isnt doing any more interviews, he's in FL on a yacht counting the money from the investors he has duped....and it continues to flow in.
The business press will pick up the story only if Timberland defaults and loses the property. I heard that Timberland planted the 2.5 million seedlings last year and scanned the 10-k but could not find it in the filing. Wells is not managing Timberland, it has hired a third party to run the property. Wells has raised a lot of money, but I think this deal, and in particular the lone transaction, was counting on the Piedmont REIT IPO for a huge cash infusion as investors sold Piedmont and bought Timberland. This same scenario was a huge boom for Inland. The pulling of the Piedmont IPO left Timberland hanging. I would question the advice of selling a newly public IPO of an established company (Piedmont or Inland) to go put money back into a non-traded REIT. Just unnecessary broker commissions.
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