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Rayonier Press Release on Southern Acquisition

Rayonier Press Release on Southern Acquisition | Timberland Investment | Scoop.it

Rayonier Inc. (NYSE:RYN) today announced that the company has entered into three transactions with separate sellers to acquire approximately 95,100 acres of high-quality industrial timberlands located in Florida, Georgia and South Carolina for an aggregate purchase price of approximately $217 million, or $2,280 per acre (the “Acquisitions”). The Acquisitions are comprised of highly productive timberlands located in some of the strongest timber markets in the U.S. South, primarily along the I-95 coastal corridor near Savannah, GA.
Key attributes of the Acquisitions include the following:

  • Strong timber markets – located in the top three U.S. South timber markets based on average composite stumpage price by region (1)
  • Diverse customer base – very competitive wood market with multiple pulpwood, grade and export customers
  • Highly productive timberlands – 78’ site index; 73% plantable; sustainable yield* of approximately 450,000 tons (or 4.7 tons per acre per year on the acquired lands)
  • Well-stocked timber inventory – 4.3 million tons of merchantable timber inventory* (or 45 tons per acre); average plantation age of 14 years
  • Complementary to existing Rayonier landholdings – increases Rayonier’s ownership in U.S. South Coastal Atlantic markets by approximately 15%
  • Primarily fee simple ownership – 89% fee simple ownership and 11% leased lands
  • Accretive to cash flow – targeting an annual increase in Adjusted EBITDA** and Cash Available for Distribution (CAD)** of approximately $13 million and $10 million, respectively, over the medium-term

Rayonier expects to finance the Acquisitions with cash on hand and the proceeds of a follow-on offering of Rayonier common shares, which the company also announced today. 

***
(1) Based on Timber Mart-South weighted average composite stumpage price by region assuming product mix of 50% pulpwood, 30% chip-n-saw and 20% sawtimber.

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Deltic Timber Shares Spike as Filing Reports Buyout Interest

Deltic Timber Shares Spike as Filing Reports Buyout Interest | Timberland Investment | Scoop.it
Shares of Deltic Timber Corp. of El Dorado hit a new 52-week high Wednesday after a filing said the timber and real estate firm had been "approached by multiple parties interested in merging with or acquiring" the company.

In a Schedule 13D filing with the U.S. Securities and Exchange Commission, Southeastern Asset Management Inc. of Memphis said potential suitors had approached it and Deltic about a deal, and that it believes Deltic has hired a financial adviser.

Deltic shares (NYSE: DEL) rose on the news, hitting a new peak of $85.49 on Wednesday before closing at $82.51, up 5.5 percent from the previous day.
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Don’t sell state forest to timber company, Oregon governor says

Don’t sell state forest to timber company, Oregon governor says | Timberland Investment | Scoop.it

Oregon Gov. Kate Brown said Friday she was against the proposed sale of a state forest filled with old-growth timber to a logging concern and an Indian tribe, an issue that has galvanized environmentalists across the state.

 

In a jammed public meeting in December, speaker after speaker who had arrived from cities, towns and farms beseeched the State Land Board to reject the sale of the 82,500-acre Elliott State Forest to Lone Rock Timber Co. and its tribal partners.

 

Brown, one of three members of the State Land Board, said Friday she believes the forest in the Coastal Range should “remain in public ownership, with either the state or tribes owning the land.” She said, though, that the state should change the way it owns and manages the forest, whose timber sales help fund Oregon schools and which has been losing money in recent years.
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Forest Investment Associates and The Molpus Woodlands Group Acquire 295,000 Acres of Timberland from the Hancock Timber Resource Group

Forest Investment Associates and The Molpus Woodlands Group Acquire 295,000 Acres of Timberland from the Hancock Timber Resource Group | Timberland Investment | Scoop.it

Forest Investment Associates (“FIA”) and Molpus Woodlands Group (“Molpus”), two timberland investment management organizations, today announced the joint purchase of approximately 295,000 acres of timberlands in Arkansas and Texas from the Hancock Timber Resource Group (“HTRG”).

 

The property was originally part of HTRG’s acquisition from TimberStar in 2009. Primarily consisting of high-quality pine plantations, the timberlands provide timber products to industry leaders including International Paper, West Fraser and Georgia-Pacific through long-term supply agreements that have been in place since 2006. FIA’s clients acquired approximately 146,500 acres in the states of Arkansas and Texas and Molpus’ clients acquired approximately 148,500 acres in the same states, and each acquisition will be separately managed by FIA and Molpus.

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Wyoming sells land in Grand Teton National Park to feds for $46M

Wyoming sells land in Grand Teton National Park to feds for $46M | Timberland Investment | Scoop.it

A $46 million deal between Wyoming and the Interior Department put a square mile of land inside Grand Teton National Park into U.S. government hands Monday, eliminating the possibility that the pristine property with breathtaking views of the Rocky Mountains' Teton Range might be developed.

 

The sale ended years of drama in which Wyoming officials sought to sell the land called Antelope Flats in the Jackson Hole valley while federal officials and environmentalists worried it could end up privately owned.
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The open area of sagebrush was among a number of private and state-owned land called inholdings that never became part of Grand Teton when the park was established with its current boundaries in 1950.

 

Few inholdings remain in Grand Teton but the remaining ones include another square-mile state section on the park's eastern boundary that also has stunning mountain views. It is valued at about the same price as the parcel that was sold but could be more attractive to developers because a road runs through it.

Negotiations for the federal government to buy or trade other lands for that parcel are underway.

 

Wyoming officials have leased the state's Grand Teton inholdings for grazing but took in very little revenue compared to the potential value of the land on the open market. Jackson Hole has some of the highest property values in the western Rocky Mountains.

Sam Radcliffe's insight:

Kind of off-topic but I couldn't resist a $71K per acre deal.

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Austin’s Forestar Group sells off $100 million in timberland

Austin’s Forestar Group sells off $100 million in timberland | Timberland Investment | Scoop.it
Austin-based Forestar Group is selling more than 58,000 acres of timberland in Georgia and Alabama in a deal that should net the company more than $100 million, according to a Tuesday securities filing.

The company – through its subsidiaries — has agreed to three separate timberland sales, according to filings with the U.S. Securities and Exchange Commission.

Those deals are:

*The sale of 26,319 acres in Georgia to SPP Land for $43.426 million.

*The sale of 12,043 acres in Georgia and Alabama to an investment fund managed by Timberland Investment Resources, LLC for $23.73 million.

* The sale of 20,143 acres in Georgia to a different investment fund managed by Timberland Investment Resources, LLC for $37.42 million.

The company said the three transactions should close in the fourth quarter, and would combine to net it $104.58 million.

Forestar Group, which was spun off from the former Temple-Inland Inc. in 2007, operates in real estate and other natural resources and has interests in dozens of residential and mixed-use real estate projects.

The company said in April that it would sell off some of its non-core investments as part of a plan to address shareholder concerns. Last week, the company said that in the past year it has sold off $425 million in non-core assets and reduced its outstanding debt by more than $320 million.
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The major North Woods land buy has ties to Subway’s founder

The major North Woods land buy has ties to Subway’s founder | Timberland Investment | Scoop.it
The trust that bought 300,000 acres of Maine’s North Woods has ties to a nonprofit started by the family of Subway co-founder Peter Buck, a longtime philanthropist and South Portland native.

Tall Timber bought two major blocks of forestland from Canopy Timberlands LLC, in a deal that closed Sept. 30, forestry consultant Gary Bahlkow confirmed. Bahlkow said the land would continue to operate as a working forest and characterized the sale as a “routine timberland investment transaction.”

The deal gives the trust, which already owns hundreds of thousands of acres in the region, ownership of roughly 18 percent of Maine’s 3.5 million-acre North Woods, based on property records and an archive of land sales maintained by the Natural Resources Council of Maine.

Bahlkow declined to share more information on Tall Timber Trust’s ownership or the extent of its land holdings in Maine, but research into property and corporate records reveal ties to the Subway co-founder and his family foundation.
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AXA IM - Real Assets extends forestry portfolio with French acquisition

AXA IM - Real Assets extends forestry portfolio with French acquisition | Timberland Investment | Scoop.it
AXA Investment Managers - Real Assets has acquired a 958 hectare forest known as “Domaine de Saint Augustin” in the Allier and Cher departments, France, for EUR21.5 million from a private vendor.

The transaction has been undertaken on behalf of an AXA Insurance Company and brings AXA IM - Real Assets’ total forestry assets under management to circa EUR130 million, comprising circa 21,000 hectares.
 
The forest is located adjacent to the forest of Tronçais, which is renowned for producing some of the highest quality oak wood for planks and barrels, is well connected by roads and is in close proximity to a newly opened wood energy plant. The forest has good supportive infrastructure, which allows for efficient harvesting and management, as well as three lakes and forest management equipment and vehicles.
 
As part of AXA IM - Real Assets’ ongoing strategy to diversify and expand its clients’ forestry holdings, this acquisition increases the portfolio weighting of deciduous stock which is important to providing flexibility to benefit from fluctuations in demand for different types of wood, while maintaining annual revenues.
 
AXA IM - Real Assets now manages around 5,500 hectares of forest in Finland, and around 15,000 hectares in France, on behalf of its clients, equally shared between coniferous and deciduous, with the balance set aside for various leisure activities.
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$220.8 million price tag put on Elliott State Forest

$220.8 million price tag put on Elliott State Forest | Timberland Investment | Scoop.it
Oregon has put a $220.8 million price tag on the Elliott State Forest.

That’s much less than the $300 million to $400 million value estimated in August, when the State Land Board decided to sell the 82,500-acre property near Coos Bay.

“We knew there was a range. We knew there was uncertainty,” said Jim Paul, director of the Oregon Department of State Lands. “It wasn’t anything close to the rigor of the appraisal and timber cruise we went through to get this price.”

This time, three independent firms provided appraisals. Mason, Bruce & Girard, an Oregon natural resources consulting firm, prepared the final report and valuation.

The forest was created in 1930 to provide funding for the Common School Fund, but has lost money as timber harvests have declined.

The state plans to sell the property to a single party as one piece at, but not above, full market value.

The buyer must be willing to maintain public benefits such as recreational access, preservation of older forest stands, protection of watersheds and maintaining jobs.

Four dozen entities – timber companies, conservation groups, local governments and tribes – have formally expressed interest in buying the property.

They have until Nov. 15 to submit bids.
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Pope Resources Announces Timberland Acquisition

Pope Resources Announces Timberland Acquisition | Timberland Investment | Scoop.it
Pope Resources (NASDAQ: POPE) announced today that it has entered into a definitive agreement to acquire approximately 7,300 acres of timberland in western Washington for $31.9 million from a client of Hancock Timber Resource Group. The acquisition will be financed with a new credit facility and closing is expected to occur in the third quarter of 2016, contingent on obtaining such financing.

"We like what this transaction represents in terms of species mix, age class distribution, ease-of-operability, and accretive cash flow," said Tom Ringo, President and CEO.  "An added plus is how the property folds neatly into our existing timberland management infrastructure due to its proximity to other lands we already own and manage."
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Opinion: Douglas County forestland a bargain

Opinion: Douglas County forestland a bargain | Timberland Investment | Scoop.it

The state Natural Resources Board will be asked Wednesday to approve purchase of an easement on 7,090 acres in Douglas County for $3.5 million. The request by the state Department of Natural Resources is a smart investment that will serve the resource, industry and those who love the outdoors. It also builds on a historic transaction that comprises more than 100 square miles and continues Wisconsin's tradition of preserving natural spaces for future generations.

***

The agreements spell out requirements for continued logging, which will be managed by the Lyme Timber Co., and keep land open for hunting, fishing, hiking and other activities. The agreements also prohibit construction, deforestation and subdividing the land.

 

Preservation of forest land as well as jobs in the logging industry. What's not to like? Make this purchase.

 

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Catchmark Timber Trust to Acquire Prime South Carolina Timberlands for $101.8M

Catchmark Timber Trust to Acquire Prime South Carolina Timberlands for $101.8M | Timberland Investment | Scoop.it
In the company's single, largest acquisition to date since its listing on the NYSE, CatchMark Timber Trust, Inc. (NYSE: CTT) announced today an agreement to acquire 51,700 acres of prime timberlands in South Carolina for $101.8 million, excluding closing costs, from funds managed by Forest Investment Associates. The acquisition of the Carolinas Midlands III timberlands will expand significantly CatchMark's recent entry into North Carolina and South Carolina from 17,600 to 69,300 acres, and will increase the company's total acreage in the U.S. South to 480,400 acres. Closing of the transaction is expected by the end of the second quarter or early third quarter 2016.

Adding approximately 2.1 million tons1 to CatchMark's merchantable inventory, the acquisition comprises 70% pine acres and a 52%/48% pulpwood to sawtimber mix with significant diversity in topography, creating a range of seasonal harvest options to meet changing market demand. The transaction's productivity is expected to be 4.8 to 5.8 tons per acre per year, adding approximately 250,000 to 300,000 tons per year to CatchMark's harvest over the next decade.
Sam Radcliffe's insight:

Is $2000/acre the new benchmark for the US South?

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Rayonier Upgrades Pacific Northwest Timberland Portfolio Through Acquisition of 61,000 Acres and Disposition of 55,000 Acres

Rayonier Upgrades Pacific Northwest Timberland Portfolio Through Acquisition of 61,000 Acres and Disposition of 55,000 Acres | Timberland Investment | Scoop.it

Rayonier Inc. (NYSE:RYN) today announced the company has completed two separate transactions to enhance its Pacific Northwest timberland portfolio. The transactions include the acquisition of approximately 61,000 acres of well-stocked, highly-productive timberlands in Oregon and Washington, and the disposition of approximately 55,000 acres comprised of predominantly pre-merchantable timber in Washington. On a combined basis, these transactions will smooth the age-class distribution and materially improve the sustainable yield, near-term harvest potential, species mix and market diversification of the company’s Pacific Northwest timberland portfolio.

 

Menasha Acquisition: The first transaction involves the purchase of Menasha Forest Products Corporation (“Menasha”) jointly with Forest Investment Associates (“FIA”), a leading timberland investment management organization (“TIMO”) based in Atlanta, Georgia. Menasha is a privately held timberland REIT with approximately 132,000 acres of timberland located in Oregon and Washington, which since 2007 has been managed by Campbell Global, a leading TIMO based in Portland, Oregon. Rayonier teamed with FIA to acquire all of the outstanding common stock of Menasha. In a subsequent transaction that is expected to close in the second quarter, Rayonier and FIA will distribute the timberlands to various entities, ultimately resulting in Rayonier owning an identified portfolio of 61,000 acres of the Menasha timberlands for a final purchase price of approximately $263 million.
***
The Menasha acquisition (average plantation age of 22.4 years) complements the age-class profile of the company’s existing Pacific Northwest portfolio (average plantation age of 19.0 years). The property is comprised of approximately 85% operable lands and contains merchantable timber inventory of approximately 326 MMBF (2.6 million tons), of which an estimated 83% is Douglas-fir. The acquisition is expected to increase the company’s sustainable yield by approximately 38 MMBF (305,000 tons) per year and increase the company’s average annual harvest over the next five years by approximately 40 MMBF (320,000 tons).

 

Washington Disposition: The second transaction involves the sale of approximately 55,000 acres of timberland located in Washington to FIA for approximately $130 million. The Washington disposition (average plantation age of 12.6 years) evens out the age-class distribution of the company’s existing Pacific Northwest portfolio. The property is comprised of approximately 75% operable lands and contains merchantable timber inventory of approximately 44 MMBF (350,000 tons), of which an estimated 28% is Douglas-fir. Excluding the effect of the Menasha acquisition, the Washington disposition would decrease the company’s sustainable yield by approximately 25 MMBF (200,000 tons) per year; however, average annual harvest over the next five years is expected to decrease by only 9 MMBF (70,000 tons) from this disposition due to the younger age-class profile of the property.

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Drax to buy two distressed US pellet plants as it expands operations

Drax to buy two distressed US pellet plants as it expands operations | Timberland Investment | Scoop.it
Drax Group PLC (LON:DRX) is looking to buy two pellet plants in the US that have filed for bankruptcy.

The owner of the UK’s largest power plant said it has submitted initial cash offers for the operating assets of Texas Pellets and Louisiana Pellets as part of auction processes to be held on 1 and 2 March.

“Whilst these are binding bids, and could be accepted by the sellers, it is expected that the successful buyer will be determined through auctions,” Drax said.

Drax said buying the assets would help it achieve plans to expand its self-supply compressed wood pellet operations to support 20-30% of its generation requirement.

The news follows a report last week that revealed the burning of wood for biomass power and heat could be more harmful than traditional energy sources. The Woody Biomass for Power and Heat Impacts on Global Climate report said while some instances of biomass energy use may result in lower life-cycle emissions than fossil fuels, in most circumstances this was not the case.
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Hancock Timber Resource Group Acquires 25,000 Acres of Timberlands in Alabama

Hancock Timber Resource Group Acquires 25,000 Acres of Timberlands in Alabama | Timberland Investment | Scoop.it

The Hancock Timber Resource Group has completed the acquisition of approximately 25,000 acres of timberlands in Alabama from Rayonier Inc.

 

This transaction is a follow-on to another transaction completed in late 2016 where Hancock Timber acquired approximately 37,000 acres of timberlands in Mississippi and Alabama from Rayonier.

"We are very pleased to secure additional high quality timberlands for our clients," said Hancock Timber Resource Group President Brent Keefer. "These properties are located in an area of the US South with deep and diverse markets for forest products. We will be able to supply solid wood and fiber to a variety of facilities in southern Alabama, western Georgia, and northern Florida. We look forward to managing them to their highest potential."

 

As with the previous acquisition, the timberlands are stocked with well-managed southern pine plantations and hardwoods. The timberlands will be managed by Hancock Forest Management, the organization's integrated property management group. Hancock Timber has approximately 280,000 acres of timberland under management in Mississippi and Alabama, 1.8 million acres in the US South and almost six million acres globally.

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Conservation groups team up to buy forestland in Piscataquis County

Conservation groups team up to buy forestland in Piscataquis County | Timberland Investment | Scoop.it

The Forest Society of Maine has teamed up with the Appalachian Mountain Club and the Open Space Institute to acquire and conserve 4,358 acres of forestland surrounding Silver Lake and 12 miles of the West Branch of the Pleasant River in Piscataquis County.
***
The acquired lands are visited each year by thousands of people from Maine and afar for fishing, hiking, camping, paddling, hunting, snowmobiling and other recreational activities, according to a joint statement from the conservation groups. The groups noted that the property's campsites and access to the river and lake are amenities important to the region's recreational and tourism economies."Public recreational access is now guaranteed forever," the groups stated.

 

The project safeguards vital river habitat for Eastern brook trout and Atlantic salmon spawning, and habitat for American black duck, Canada lynx, Northern long-eared bat, wood turtle, bald eagle and many other species of state and national significance. The project also protects a 400-acre mature silver maple floodplain forest — one of the largest and best examples in Maine. The newly conserved lands are adjacent to the historic Katahdin Iron Works and help to buffer this state-owned site. "The remarkable mix of ecological and recreational values found here made this a high priority project for us, especially as it is fills a key gap in the network of two million acres of already conserved lands in this region of Maine's North Woods," said Alan Hutchinson, executive director of the Forest Society of Maine.

 

With the acquisition complete, the Appalachian Mountain Club now owns these lands and the Forest Society of Maine holds a conservation easement on the property. The Silver Lake – Pleasant River lands are adjacent to AMC's 70,000 acres of other conservation holdings in the area, which provide the focus for its Maine Woods Initiative, an innovative approach to conservation that combines outdoor recreation, resource protection, sustainable forestry, and community partnerships. The Forest Society of Maine worked with Conservation Forestry — a New Hampshire-based timber investment firm and the owner of these lands since 2009 — to develop a conservation future for the property, recognizing the special ecological and recreational values found there.

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Alternative plans sought for Oregon's oldest state forest

Alternative plans sought for Oregon's oldest state forest | Timberland Investment | Scoop.it

In a public meeting that exposed deep concerns about global warming and deforestation, Oregon's top elected state leaders on Tuesday postponed a decision on the proposed sale of the Elliott State Forest to a timber company, instead making a pitch for alternatives that would maintain public ownership of the state's first public forest.

 

Speaker after speaker came from cities, towns and farms to pack the meeting room in the Keizer Community Center, north of Salem. They beseeched their leaders to reject the sale of the 82,500-acre forest in the Coastal Range to Lone Rock Timber Co. and its tribal partners.
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The sale of the forest was proposed because timber harvest revenues that go into a school fund have dropped in recent years.
***
Some school board representatives backed the sale, saying the $221 million it would fetch should go into the Common School Fund. Several speakers recommended that if the sale does not go forward, that the forest be removed from the Common School Fund portfolio so it would not suffer negative impacts with declining timber harvests.

 

Lone Rock, based in Roseburg, had said it was confident that it could turn a profit by extracting at least 35 million board feet per year from the forest while providing protections for older forests, streams, recreation opportunities and local jobs. The state has not logged nearly that amount in recent years. State officials have been unable to harvest much timber from the forest in recent years because of environmental protections and lawsuits.

"It is a sustainable harvest level based on the estimated 70+ million board feet of forest growth each year," Jake Gibbs, director of external affairs of Lone Rock Resources, told The Associated Press in an email.

 

After years of sustained gains since 1997, net revenue from the forest fell from $5.8 million in 2012 to losses of $3.3 million in 2013 and $1.8 million in 2014, the Oregon Department of State Lands says. But 2015 saw gains. This year through 2019 are expected to be borderline.

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Rosboro of Springfield announces its sale, starting with timberlands

Rosboro of Springfield announces its sale, starting with timberlands | Timberland Investment | Scoop.it
Wood products manufacturer ­Rosboro, one of Springfield’s oldest employers, has sold its timber holdings, and the rest of the firm, including its large mill on Main Street in Springfield, could be sold by the end of the year.

Rosboro announced Tuesday that it sold about 95,000 acres of timberlands in ­Western ­Oregon to an entity managed by Campbell Global LLC, based in Portland.

Privately held Rosboro did not disclose a purchase price. Based in Springfield since 1939, Rosboro also said it expects to sell its factories, ­including mills in Springfield, but did not offer details about a sale except that the deal could be completed by the end of December.

“We especially want to acknowledge and show our strong appreciation for our customers, suppliers, contractors and employees for the incredible relationship and partnership we have had over the years,” Chief Executive Scott ­Nelson said in a written statement.
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Cambium Global Timberland to sell timber to Brazilian paper company

Cambium Global Timberland to sell timber to Brazilian paper company | Timberland Investment | Scoop.it

Cambium Global Timberland has agreed to sell all of the standing timber on its property in Tocantins state to Suzano Papel e Celulose, a Brazilian pulp and paper company. This sale is part of planned realisation of all the AIM-listed company's assets.


The deal to sell the timber of the company's 3R property in the state of Tocantins in central Brazil is expected to generate an income equalling the current book value of the trees, before legal and financial advisory costs.


A deposit is payable within 15 days of the agreement which is expected to be about 20% of the total purchase price, which will be determined after a pre-harvest inventory in early 2017. About 60% is due after the pre-harvest inventory and the balance before the end of 2017 once all the wood has been removed.

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Scenic Boardman Tree Farm will be cut, replaced with cows and potatoes

Scenic Boardman Tree Farm will be cut, replaced with cows and potatoes | Timberland Investment | Scoop.it
The windblown poplars that line Interstate 84 near Boardman will soon be cut for good.

One-third of the 25,000-acre Boardman Tree Farm sold in November to a dairy. Now, a Washington agriculture company bought the rest of the land for irrigation crops, such as potatoes.

The Boardman Tree Farm is a distinct element of the Columbia Gorge landscape. Rows and rows of millions of hybrid poplar trees run next to the highway for six miles. GreenWood Resources, a firm that manages forests as investments in timber, has owned the tree farm since 2007, and it has become a community fixture.

Each year, a charity race is held on the site. A sawmill and a veneer plant are located on the farm. The East Oregonian reports that those two companies employ about 100 people.

The poplar trees are harvested on a 12-year cycle. It will takes years to fully clear cut the tree farm.

Willow Creek Dairy, which leases land from Threemile Canyon Farms, bought 7,288 acres from tree farm owner GreenWood Resources for $65 million, according to Capital Press. The dairy is planning to use the land along the southern boundary of the farm, near Finley Buttes.

AgriNorthwest, a company from the Tri-Cities region, will use the land near the highway.

Terms of the deal were not disclosed.

GreenWood Resources has a headquarters in Portland, but manages forests and timber sales in Asia, Europe and Latin America as well as the U.S. In 2015, the company expanded its operations to near $1 billion in timber assets.
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Thanks to Bob Chambers for bringing this to our attention.

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WEYERHAEUSER TO EXPLORE STRATEGIC ALTERNATIVES FOR ITS URUGUAY TIMBERLANDS AND MANUFACTURING BUSINESS

WEYERHAEUSER TO EXPLORE STRATEGIC ALTERNATIVES FOR ITS URUGUAY TIMBERLANDS AND MANUFACTURING BUSINESS | Timberland Investment | Scoop.it

 Weyerhaeuser Company (NYSE: WY) today announced the exploration of strategic alternatives for its timberlands and manufacturing operations in Uruguay. The company intends to consider a broad range of alternatives, including continuing to hold and operate the business, or a sale.

 

"In Uruguay, Weyerhaeuser has established a high-quality timberlands portfolio supported by value-creating manufacturing operations and a team of dedicated employees," said Doyle R. Simons, president and chief executive officer. "Following our merger with Plum Creek, we are evaluating strategic alternatives for this business to best position it for long-term success and ensure we are maximizing value for our shareholders."

 

Weyerhaeuser established its operations in Uruguay in 1997. Today, its business there includes over 300,000 acres (120,000 hectares) of timberlands in northeastern and north central Uruguay, as well as a plywood and veneer manufacturing facility, a cogeneration facility, and a seedling nursery.

 

The review of the Uruguay operations does not guarantee that the company will pursue a transaction, or that a transaction would be completed if initiated.

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NC State Sells Long Term Timber Deed to RMS on Hoffman Forest

NC State Sells Long Term Timber Deed to RMS on Hoffman Forest | Timberland Investment | Scoop.it

The Board of Trustees of the Endowment Fund of NC State University and the Natural Resources Foundation today announced a new agreement for the timberland on Hofmann Forest, ensuring long-term sustainability for the land and consistent annual income for the College of Natural Resources.

 

The Endowment Fund Board and the Foundation signed a $78 million, 50-year timber deed with Hofmann Forest Timberlands LLC, an entity managed by Resource Management Service LLC (RMS), which is a privately held timber investment management organization known for its leadership in sustainable forest management practices. The timber deed gives RMS rights to sustainably grow, harvest and replant the timber on 54,334 acres of working forest with the NC State Endowment Fund maintaining ownership of the land.

 

The agreement also maintains access for students and faculty in the College of Natural Resources to teach and conduct research across the property, and it requires RMS to manage the forest to meet sustainable forest management certification requirements and return an improved age class distribution of trees at the end of the 50-year contract. As a working forest, the majority of the 79,000-acre forest will remain dark and undeveloped, providing clear benefits for the military and economic prosperity in eastern North Carolina.

 

The proceeds from the contract will be invested in the Endowment Fund of NC State University and will provide a consistent yearly income of about $3 million that will go exclusively to support the teaching, research and outreach programs of the College of Natural Resources. The consistent annual funds replace variable yearly income previously generated by the Foundation’s management of the forest, enabling the college to better plan for and utilize resources to benefit its educational mission. The agreement also reduces the Endowment Fund’s investment risks and gets the Natural Resources Foundation out of the business of managing a commercial forest and more focused on advancing the teaching and research mission of the college.

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Timberland Transaction Trends in North America

Timberland Transaction Trends in North America | Timberland Investment | Scoop.it

The figure below highlights how timberland transaction volume over the past five years leading to 2016 rose to levels more in line with pre-Recession markets. From 2011 through 2015, large-acre, publicly announced deals averaged 2.2 million acres and 52 closings in the U.S. annually.

 

Each year seemed to have a “signature” transaction as the market probed its way forward. In 2012, Hancock Timber Resource Group and Molpus acquired 1.9 million acres from Forest Capital Partners, closing out Forest Capital’s work in transferring Boise Cascade’s timberlands to the institutional investment sector. In 2013, Weyerhaeuser acquired 645,000 acres from Longview Timber (Brookfield) in the Pacific Northwest, recapturing the acres within a public REIT that had once traded as a standalone public REIT (in 2006). In 2014, JWTR sold 600,000 acres in Oregon to Green Diamond. And 2015 opened and closed with a series of robust transactions starting with the Q1 197,000-acre sale in Oregon by Cascade Timberlands to Singapore-based Whitefish Cascades Forest Products and ending with four Q4 100,000+ acre transactions involving firms such as Lyme, Campbell Global, Hancock, and Molpus.

 

In conclusion, the primary changes since Q1 2015 center on the public REITs. Acquisitions, divestitures and statements by public firms highlight efforts to look forward and allocate capital in ways that optimize their portfolios and shareholders. Overall, the sector continues its efforts to optimize timberland portfolios in a mature, competitive and increasingly transparent North American market.

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Quantum Global backs Angolan timber with $50mln

Quantum Global backs Angolan timber with $50mln | Timberland Investment | Scoop.it
In a deal with the Government of Angola, Quantum Global is leasing over 80,000 hectares to develop large-scale wood fiber plantations in the country’s Planalto region. As part of the 60-year concession, Quantum aims to invest $50 million over the next 5 years in establishing new plantations, infrastructure and wood processing industries.

Through this acquisition, Quantum Global aims to realize risk-adjusted returns for the timberland asset class, whilst implementing sustainable forestry practices and facilitating conservation protection on the investments. The Planalto region has large areas of fertile land that are currently underutilized, low population pressure limited natural forests. These factors, combined with sufficient water resources and access to transport infrastructure are suitable for the development of large-scale wood fiber plantations.
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Weyerhaeuser will sell five pulp mills for $2.2 billion

Weyerhaeuser will sell five pulp mills for $2.2 billion | Timberland Investment | Scoop.it

Weyerhaeuser has agreed to sell five pulp mills in the South and Canada to International Paper for $2.2 billion in cash, the Federal Way company said Monday.

 

Weyerhaeuser expects to use much of the estimated $1.6 billion after-tax proceeds to repay money it borrowed for a previously announced $2.5 billion share-repurchase program.

 

The transaction includes five pulp mills in Columbus, Miss.; Flint River, Ga.; New Bern, N.C.; Port Wentworth, Ga.; and Grande Prairie, Alberta, with a combined total capacity of nearly 1.9 million metric tons. The sale also includes two modified fiber mills in Columbus, Miss., and Gdansk, Poland.

 

The Weyerhaeuser plants have a total annual production capacity of almost 1.9 million metric tons and employ about 1,900 workers in the U.S., Canada and Poland.

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