Timberland Investment
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Timberland Investment
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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

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Faulty Green Certification Costing GA Timber Growers Much Green

Faulty Green Certification Costing GA Timber Growers Much Green | Timberland Investment | Scoop.it

The following is a guest post from Senator Tyler Harper (R-Ocilla)


Some in the media and in politics fail to understand that just because a favored policy of a lawmaker or interest group is described as “green” does not mean it will yield positive environmental outcomes. In addition to failing to stimulate conservation, these policies also may curtail economic activity in a way that hurts many businesses and timberland owners. This can certainly be the case in the forest products industry when policy intended to promote “green building” results in the diminished use of Georgia-grown wood thus reducing the incentive to tree farmers to continue planting and managing environmentally beneficial timberland.


A good example is approach of the U.S. Green Building Council (USGBC) which has failed to heed the advice of a growing chorus of critics who take issue with its definition of “sustainable” timber. The organization’s “LEED” building rating system, which many cities, states and federal agencies use as binding guidelines for energy-efficient building projects, only recognizes a small fraction of Georgia’s wood as being sustainably managed.


Only lumber “certified” by the Forest Stewardship Council (FSC) is formally recognized by the LEED system. Wood certified by the American Tree Farm System (ATFS) and the Sustainable Forestry Initiative (SFI), by far the majority of Georgia’s certified wood, is not.


This policy can adversely impact heavily-forested states such as Georgia, whose timber industry supports 160,000 jobs. Millions of acres of our forests are certified to ATFS and SFI standards, while just over 30,000 acres are recognized by FSC.

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Buyer Exercises Option on $9 Million CatchMark Land Sale

Buyer Exercises Option on $9 Million CatchMark Land Sale | Timberland Investment | Scoop.it

CatchMark Timber Trust, Inc.  announced today that a prospective buyer has exercised its option to purchase approximately 3,000 acres of CatchMark land holdings in Georgia for approximately $9 million under an existing option agreement with the company. The transaction is expected to be completed during the fourth quarter of 2014, subject to customary closing conditions.  Under terms of the agreement with the buyer, no other details were announced.


Jerry Barag, President and CEO of CatchMark, said: "This pending transaction is in keeping with our previous guidance for completing $8 million to $10 million in land sales during 2014. We continue to assess opportunistic dispositions across our portfolio with a view toward maximizing the value of our land base and taking advantage of higher-and-better use land sale opportunities where available."   

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Cambium Global Timberland sells 8,065 acres in Georgia for $9.1 million

Cambium Global Timberland sells 8,065 acres in Georgia for $9.1 million | Timberland Investment | Scoop.it

In line with the Cambium Global Timberland's stated strategy for the orderly disposal of its assets, contracts have been exchanged for the sale of the Company's 8,065 acre property in Stewart CountyGeorgia, for a gross cash consideration of $9.1 million. Completion is expected to take place on 26 June, 2014, as the company said in the press release received by Lesprom Network.


The net proceeds of sale from this disposal and the disposal of Clinch County previously announced will be applied in discharging associated indebtedness of some $6.2 million. Surplus cash remaining after providing for working capital requirements will be made available to shareholders and another announcement will be made in due course following further consultation with shareholders.


The Stewart County property was marketed alongside the Clinch County property. The sale price represents 91% of the 31 October 2013 carrying value of the Stewart County asset.


Sam Radcliffe's insight:

As usual, the arithmetic: $1,128 per acre, quite a bit lower than other recent sales of timberland in the US South, but we do not know any details of the deal.

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Georgia forests, 2011: Forest area remains the same, while ownership changes

Georgia forests, 2011: Forest area remains the same, while ownership changes | Timberland Investment | Scoop.it

Georgia contains the largest area of forest cover of any state in the South, with forests making up 67 percent of land cover or 24.8 million acres, according to a Forest Inventory Analysis (FIA) Factsheet just released by the USDA Forest Service Southern Research Station (SRS). While this land area remains stable, timber inventory has increased.


"Forest area in Georgia remained relatively stable over the last 50 years," says Richard Harper, SRS forester and author of the analysis. "While forest area stayed about the same, timber inventory more than doubled over the same period—suggesting that Georgia's forest landowners are engaged in long-term strategies to improve sustainability of their forests."

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