TimberWest Forest Corp. Clarification on Real Estate Sales Expectations

    VANCOUVER, Oct. 5 /CNW/ - TimberWest Forest Corp. is today clarifying its
real estate sales expectations for 2007 in light of some confusion in the
media regarding the potential sales values for real estate lands that are
currently being auctioned by LFC in conjunction with Avison Young.
    As announced in August 2007, TimberWest expects to close the sale of
9,700 hectares of timberland on southern Vancouver Island to the Capital
Regional District ("CRD") in the fourth quarter for approximately $65 million
or $6,660 per hectare ($2,700 per acre). This land is going to be added to the
CRD's watershed.
    To the end of September, TimberWest has generated no net distributable
cash from real estate sales. However, in addition to the unique properties
being marketed internationally through the auction, Colliers has a portfolio
of land that is being conventionally marketed. The closing dates for these
transactions are uncertain but we do not expect average per acre values to
deviate significantly from those we have realized historically. We anticipate
that by the end of October 2007 we will have a better understanding of the
outcome of the conventional real estate marketing program and that by the
middle of November 2007 we will have a better understanding of the outcome of
the auction program.

    About TimberWest

    TimberWest Forest Corp. is uniquely positioned as the largest owner of
private forest lands in western Canada. The Company owns in fee simple
approximately 334,000 hectares or 825,000 acres of private timberland that,
over the previous five years, have provided an annual average harvest of 2.594
million m3 of logs and have an approximate annual growth rate of 8.0 m3 per
hectare per year on the productive land base. These timberlands are located on
Vancouver Island and the majority of the land base supports the growth of
Douglas fir, a premium tree species sought after for structural purposes.
TimberWest runs fully-contracted harvesting operations. With almost 80% of the
Company's annual private land logging now being done in second-growth stands,
TimberWest leads the Coastal industry in the growing and harvesting of
second-growth timber.
    The Company's independent auditor, KPMG Performance Registrar Inc.,
periodically certifies that the forest management practices on the Company's
private timberland continue to meet all Sustainable Forestry Initiative
(SFI(R)) requirements. SFI requirements specify that forest harvesting is
integrated with environmental and conservation goals for soil, wildlife, water
quality protection, conservation of biodiversity, protection of special sites
and aesthetics in a manner that ensures a sustainable harvest over the
    TimberWest also owns renewable Crown harvest rights to 0.7 million m3 of
logs per year and operates a sawmill located near Campbell River, BC.
    In addition, approximately 38,000 hectares or 94,000 acres of the
Company's private forest lands have been identified as having greater value as
real estate properties and will progressively be made available for higher
uses over the next ten to fifteen years. The Company reviews its land base on
a periodic basis to update the size of its portfolio of higher use properties.

    %SEDAR: 00009326E

For further information:

For further information: Bev Park, Executive Vice President and Chief
Financial Officer, Telephone: (604) 654-4600, Facsimile: (604) 654-4662,
Email: invest@timberwest.com

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890