Timberland Investment
96.9K views | +7 today
Follow
Timberland Investment
Timber Industry | Deals & Transactions | Investment Rationale | Financial Performance | Investors | Asset Managers
Curated by Sam Radcliffe
Your new post is loading...
Your new post is loading...
Scooped by Sam Radcliffe
Scoop.it!

Cabinet to consider buying timber land in St. Johns County

Cabinet to consider buying timber land in St. Johns County | Timberland Investment | Scoop.it
Gov. Rick Scott and the Cabinet on Tuesday will be asked to buy 5,236 acres of timber land in St. Johns County, to be used as a Northeast Florida conservation easement, for $5.795 million.

David Clark, the director of the Florida Department of Environmental Protection's Division of State Lands, said the deal allows the Meldrim family, which has owned the land since the early 1900s, to continue to harvest timber and maintain jobs in the area, while permanently limiting development.

"The easement will create a significant watershed buffer for the St. Johns River, protecting and maintaining the water and wetland systems of the state," Clark said.

The land, part of the 26,272-acre St. Johns River Blueway Florida Forever track, runs along the eastern shore of the St. Johns River, between Green Cove Springs and Palatka.

The land is adjacent to the Watson Island State Forest, which is on the west bank of the river.

The sales price is 89 percent of the property's appraised value, according to a Cabinet report which recommends approval of the purchase.
more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

State lands director resigns amid timber-contract questions

State lands director resigns amid timber-contract questions | Timberland Investment | Scoop.it

The state lands director quit her job at the Florida Department of Environmental Protection (DEP) after a newspaper questioned the agency’s $500,000 contract to a private company to do timber surveys in state parks.


Kelley Boree quit her as state lands director Friday “to pursue other opportunities,” according to her letter of resignation, which provided no reason for her decision to resign.


She told the Tampa Bay Times that she has not lined up another job to replace the $115,000 a year position at DEP as state lands director, which she had held since May 2014.


The newspaper had been asking DEP officials for the past month about the $500,000 timber-survey contract awarded on a sole-source basis, which precluded competitive bidding for the contract.


Internal legal reviews at DEP determined that the the agency fully complied with state rules for awarding sole-source contracts.
However, DEP canceled its $500,000 contract to a private business called Forestech without explanation, and Boree resigned the next day as state lands director, the Times reported.


The paper also reported that the founder of Forestech worked for DEP for 15 years.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Timber Business Booming Throughout Northeast Florida

Timber Business Booming Throughout Northeast Florida | Timberland Investment | Scoop.it
The towering grove of century-old longleaf pines surrounding Roger Ward's family home is a rare site in this verdant swath of north-central Florida — most pines here are cut and processed for profit as soon as their 15-to-18-year growth cycle is complete.

The demand for timber worldwide is booming and this remote section of Florida, along with other timber-growing regions of the southeastern U.S., are benefiting. Dozens of lumber mills and pine straw, bark and wood pellet processing plants have sprung up in north Florida to take advantage of the unique soil composition, lengthy growing season and warm, moist climate in which pine trees thrive.

In a state where undeveloped real estate quickly gives way to neighborhoods, strip malls, hotels or amusement parks, this timber-rich part of Florida is unique.

Ward jokes that the acres of tall pines constituted his college fund and his parents' 401k. The family's fortunes have long been linked to the rise and fall of the timber market.

"This is certainly one of the better times around here for timber," Ward said as he inspected a field of tree saplings on a recent afternoon.

Timber prices are rising as demand grows for timber used in building, paper products and biofuels worldwide. Prices for Florida saw pine peaked around 2005 — before the housing bust and the recession — at $40 a ton, according to Timber Mart-South, a Georgia-based nonprofit organization that tracks the timber industry. Prices fell to $21 a ton in 2011 but are now around $25 a ton and rising.
more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Timbervest buys Flagler County timberland

Timbervest buys Flagler County timberland | Timberland Investment | Scoop.it

Timbervest, an Atlanta-based company that manages timber-producing properties across the country, continues to buy woodland properties in Flagler County.


Last month, the company, doing business as Timbervest Partners III Florida LLC, purchased 1,667 acres west of Bunnell for just under $2.2 million, according to Flagler County property records. The sellers were James E. Millican, Sandra C. Millican and William D. Millican.


Timbervest has been buying Flagler County timberland since 2012 and the new acres increases the company’s local holdings to more than 10,000 acres.

Sam Radcliffe's insight:

$1,319 per acre

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

St. Joe Announces an Agreement to Sell 382,834 Acres of Non-Strategic Lands

St. Joe Announces an Agreement to Sell 382,834 Acres of Non-Strategic Lands | Timberland Investment | Scoop.it

The St. Joe Company (NYSE: JOE) (the “Company”) today announced that it has entered into a sales agreement (the “Sales Agreement”) with AgReserves, Inc., a Utah corporation, to sell approximately 382,834 acres of its non-strategic timberland and rural land in Northwest Florida for $565 million. The final price is subject to an adjustment set forth in the Sales Agreement. This proposed transaction does not include land within the Company’s existing residential or commercial real estate segments or its resorts, leisure or leasing segment, nor include any land for which the Company had plans to develop or use in these types of operations in the foreseeable future.

***

The land to be sold includes the majority of the Company’s timberlands in Bay, Calhoun, Franklin, Gadsden, Gulf, Jefferson, Leon, Liberty and Wakulla counties and had an aggregate carrying value of approximately $54 million at October 31, 2013. AgReserves, Inc. is assuming agreements and contracts existing on the purchased timberlands and intends to maintain timber and agricultural uses of the lands.

***

The transaction was unanimously approved by the board of directors of the Company and by AgReserves Inc., and is subject to customary closing conditions, including regulatory approvals, and the approval of the shareholders of the Company. The transaction is expected to close in the first quarter of 2014. Following the sale, the Company will own approximately 184,000 acres of land concentrated primarily in Northwest Florida, which includes lands used or intended to be used in its real estate development operations.

Sam Radcliffe's insight:

$1,475 per acre, considerably lower than some other big southern transactions recently. I am not familiar with the precise character of these lands.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Cambian Global Timberland completes Florida land sale

Cambian Global Timberland completes Florida land sale | Timberland Investment | Scoop.it

Cambian Global Timberland has completed the sale of 13,810 acres of land in Florida.


Estimated proceeds net of transaction costs and a loan prepayment fee will be $15.4m, representing 97% of the 31 October third-party appraisal.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Florida's Next Frontier

Florida's Next Frontier | Timberland Investment | Scoop.it

A parcel of timberland in Florida that is nearly the size of Rhode Island and owned by a who's who of elites from the worlds of business and diplomacy is now slated to be the next frontier in the state's real-estate development.

...


[Editor: Not identified in the article, the entity that owns these lands is Foley Timber Company.]

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Florida Spends $4 Million on Conservation Easement to Lyme Timber

Florida Spends $4 Million on Conservation Easement to Lyme Timber | Timberland Investment | Scoop.it
State officials, environmentalists and the landowner say the deal is good for everybody, including taxpayers.

It allows Lyme Timber Company to continue harvesting trees on more than 8,000 acres in exchange for not cashing in with houses, hotels and strip malls. Company managing director Tim Morrow says the deal preserves a way of life.

“The hunting culture is strong there. This land will remain available for those local hunt clubs to continue their activities. In addition, that hunting activity brings economic activity as those folks come in every fall to pursue their hunting.”

Audubon of Florida lobbyist Charles Lee says the property couldn’t be a more tempting target for bulldozers or a better habitat for wildlife. Iconic species like the Florida black bear and American bald eagle call it home.

“It is one of the biggest conservation easements you’ve done in a while and we think it’s going to be important for future generations.”

Deborah Keller of The Nature Conservancy says the deal is part of a much larger effort.

She says the Lyme property will help the Big Bend Wildlife Management Area continue buffering 70 miles of coastline from development.

“This project is a connection to that project. It helps us create a continuous corridor of conservation area, and more importantly, working lands for this area. Ninety percent of Dixie County’s economy is based on the timber industry.”

Scott and the Cabinet approved the deal unanimously.
more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Plum Creek Completes Sale of Southern Timberlands

Plum Creek Completes Sale of Southern Timberlands | Timberland Investment | Scoop.it
SEATTLE, Sep 18, 2015 (BUSINESS WIRE) -- Plum Creek Timber Company, Inc. PCL, +0.51% today announced it has completed the sale of approximately 98,000 acres of timberlands in west-central Florida to Hancock Timber Resource Group for approximately $120 million.

“We are pleased to conclude this transaction with Hancock Timber which will continue to operate these lands as working forests,” said Rick Holley, chief executive officer. “The agreement allows our company to take advantage of a market opportunity and reflects our long-term strategy designed to upgrade the value and productivity of our timberland portfolio over time through the identification and sale of non-strategic lands. While these lands have been well-managed, the significant hardwood component of the property didn’t fit well with our broader Southern timberland portfolio.”
more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

CatchMark to Acquire Prime U.S. South Timberlands for $106 Million in Two Separate Transactions

CatchMark to Acquire Prime U.S. South Timberlands for $106 Million in Two Separate Transactions | Timberland Investment | Scoop.it

CatchMark Timber Trust, Inc.  announced today agreements to acquire a total of 55,671 acres of prime timberlands in two separate transactions totaling $106 million. The properties are located primarily in Middle and South Georgia (approximately 95% of the acreage) as well as North Florida. If completed, these acquisitions are expected to add 2.5 million tons of timber to CatchMark's merchantable inventory, comprising 72% pine plantations by acreage and 48% sawtimber by tons, and are expected to increase the company's annual harvest volumes over the next decade by 230,000 to 250,000 tons.


The two transactions—known as Oglethorpe and Satilla River—are expected to close during the third quarter, subject to completion of CatchMark's due diligence and the satisfaction of closing conditions, including verification of inventory and title. The transactions will be financed through a combination of CatchMark's credit facility and cash on hand. During 2014, CatchMark has acquired or entered into agreements to acquire approximately 100,000 acres of timberlands, representing a 36% increase in its total acreage relative to year-end 2013. In aggregate, these acquisitions, assuming completion of the Oglethorpe and Satilla River transactions, are expected to increase CatchMark's annual harvest volumes over the next decade by approximately 440,000 to 480,000 tons.

Sam Radcliffe's insight:

Some arithmetic: $1,904 per acre; $42.40 per ton of inventory; $442 per ton of increased annual harvest

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Tallahassee Pension Plan adds private equity, timber and increases real estate

Tallahassee Pension Plan adds private equity, timber and increases real estate | Timberland Investment | Scoop.it

Tallahassee (Fla.) Pension Plan is adding new target allocations to private equity and timber, and increasing its target to real estate, said Kent Olson, the city’s deputy treasurer-clerk.


The changes follow an asset allocation study by Segal Rogerscasey, the $1.3 billion pension fund’s investment consultant. The new allocation was approved by the city’s sinking fund commission, which oversees the pension fund, at its meeting Wednesday.


The new allocation creates targets of 5% each to private equity and timber, and increases the target to real estate to 15% from 10%, Mr. Olson said. Staff and Segal Rogerscasey have begun interviews with some private equity and real estate managers in anticipation of the new allocation. Additional invitation-only searches for real estate and timber are likely to occur in the first six months of 2014, he added.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

St. Joe Explores Opportunities To Sell Timber And Rural Lands

St. Joe Explores Opportunities To Sell Timber And Rural Lands | Timberland Investment | Scoop.it
The St. Joe Company (NYSE:JOE), a real estate developer and manager in Florida is exploring potential opportunities to sell timber land, rural land, and/or related timber rights, according to its latest Form 8K filing with the Securities and Exchange Commission (SEC).

The real estate company is the largest private landowner in Northwest Florida with 567,000 acres of land. Majority of its land that are not under development are used for growing and selling timber. Hedge fund manager, Bruce Berkowitz of Fairholme Capital Management is the largest shareholder of The St. Joe Company (NYSE:JOE). He serves as chairman of the board of the company. The hedge fund owns around 27 percent or more than 25 million shares of the outstanding shares of the company as of March 2013.


According to the company, it is considering the idea of selling some of its assets because of certain expressions of interests and timber market conditions. The St. Joe Company (NYSE:JOE) emphasized that the assets it is planning to sell are those “not strategic to the company’s core real estate development activities.”


“From time to time, the company has, and will continue to, evaluate opportunistic transactions with respect to such assets. At this point in time, the company cannot determine whether any of these potential opportunities will result in a signed agreement or a closed transaction,” wrote The St. Joe Company (NYSE:JOE) in its filing.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Florida State Board narrows field for private equity consultant

Florida State Board narrows field for private equity consultant | Timberland Investment | Scoop.it

Florida State Board of Administration, Tallahassee, named Cambridge Associates, Hamilton Lane Advisors and StepStone Group as finalists to become the board's private equity consultant, according to an FSBA statement.

...

FSBA has allocated $6.4 billion to private equity and $5.9 billion in strategic investments, which consist primarily of hedge funds, distressed debt and timberland.


Because it uses a number of strategic investment consultants depending on the nature of the investment, FSBA wants to consolidate the reporting. Strategic investments consulting isn't affected by the change. Among its strategic investments consultants, FSBA uses Cambridge Associates for hedge funds, Townsend Group for timber and Hamilton Lane for distressed debt.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Profiles of Florida's Top 10 Private Landowners

Profiles of Florida's Top 10 Private Landowners | Timberland Investment | Scoop.it

Combined, the 10 companies own more than 5,000 square miles of Florida — roughly a tenth of the state's total land area. The large privately owned swaths are vital to Florida's future — from their environmental importance for protecting the state's freshwater resources and wildlife habitats to their economic significance for preserving agriculture and developing new business sectors.

...

Like Plum Creek, most of the companies on the top 10 list plan to remain primarily agricultural businesses — whether raising cattle in central Florida, growing sugar cane and citrus in the southern part of the state or planting trees in the north. In addition to use for lumber and pulp, pines grown by Plum Creek, St. Joe Co., Foley Timber, Rayonier Timber and others soon will become part of the biofuels boom...

...

But Plum Creek and most of the others also are moving to develop strategic pieces of their Florida holdings.

more...
No comment yet.