Timberland Investment
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Roseburg Forest Products completes acquisition of timberlands in southeastern US

Roseburg Forest Products completes acquisition of timberlands in southeastern US | Timberland Investment | Scoop.it
Roseburg Resources Co. has announced the acquisition of approximately 158,000 acres of investment-grade timberland in the southeastern United States from Forest Investment Associates (FIA), a timberland investment management organization.


The timberland is located around Roanoke Rapids, largely within the coastal region of North Carolina and southeastern Virginia, and has a strong history of professional management. The acquisition was completed Sept. 28, 2017.


“The property is an accretive addition to Roseburg’s Western-based timberland portfolio, with close proximity to broad, stable markets,” Roseburg Senior Vice President of Resources Scott Folk said. “With an attractive age class distribution and above-average site productivity, the property represents significant long-term value for the company, as Roseburg seeks to diversify and grow its timber holdings.”

Roseburg currently owns and sustainably manages over 630,000 acres of timberland in Oregon and California, largely composed of Douglas fir.


“This acquisition advances Roseburg’s planned expansion into the southeastern U.S., where steady housing starts and healthy markets create stable demand for high-quality timber,” Roseburg CEO Grady Mulbery said. “The region’s welcoming business environment and potential for growth also factored into our decision to add the property to our portfolio.”

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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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More than 10,000 acres in Sierra Nevada protected in deal that aims to boost water supply, reduce fires

More than 10,000 acres in Sierra Nevada protected in deal that aims to boost water supply, reduce fires | Timberland Investment | Scoop.it

More than 10,000 acres of scenic meadows, forests and trout streams in the Sierra Nevada 10 miles west of Lake Tahoe have been preserved in a deal in which environmentalists hope to prove that thinning out overgrown forests can increase California's water supply.

The Northern Sierra Partnership, an environmental group based in Palo Alto and founded by longtime Silicon Valley leaders Jim and Becky Morgan, joined with the Nature Conservancy and the American River Conservancy to buy the land for $10.1 million from Simorg West Forests, a timber company based in Atlanta.

The deal, which closed Aug. 5, preserves a landscape south of Interstate 80 in Placer County adjacent to Granite Chief Wilderness in the Tahoe National Forest. The land contains more than 20 miles of blue ribbon trout streams.

Sam Radcliffe's insight:

Simorg is a Forest Investment Associates entity.

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DCNR to add 17,000 acres to Elk State Forest

DCNR to add 17,000 acres to Elk State Forest | Timberland Investment | Scoop.it

Acting [Pennsylvania] Department of Conservation and Natural Resources (DCNR) Secretary Cindy Adams Dunn announced Friday that the department is adding more than 17,000 acres of wooded land and waterways to the adjacent Elk State Forest — the largest land addition to the state forest system in 65 years.

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The state invested $7.2 million to purchase the land, which came a fund from mitigation payments for rights-of-way and other transactions that is intended for the acquisition of new state forest lands, according to the DCNR.  

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The property was purchased from Forest Investment Associates (FIA). The company will retain the timber rights for 35 years and continue harvesting timber — supporting local forest management companies and sawmills — under an agreement that requires sustainable forest management practices, according to the DCNR. The timber rights will revert to DCNR in the future, which will continue to ensure it is well-managed for the health of the forest and to support jobs that pay in the forest products industry, the DCNR states.

Sam Radcliffe's insight:

Approximately $425 per acre

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Pennsylvania Municipal adds $42.5m to FIA timber allocation

Pennsylvania Municipal adds $42.5m to FIA timber allocation | Timberland Investment | Scoop.it

...the pension fund added $42.5 million each to core real estate manager TIAA-CREF, giving the portfolio a total of about $152 million, and to timber manager Forest Investment Associates, bringing that portfolio to about $117 million.


The additions are the result of the pension fund's approval of a recommendation at its March meeting to increase the overall target to real estate to 20% from 15%.


The allocation to core real estate increases to 12.5% from 10% of the overall fund, while timber increases to 7.5% from 5% of the overall fund.

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Pennsylvania pension fund starts timber search

Pennsylvania pension fund starts timber search | Timberland Investment | Scoop.it

Pennsylvania Municipal Retirement System, Harrisburg, is searching for a timber manager to run $70 million, confirmed James Allen, secretary of the $1.6 billion pension fund.


State law requires that external manager services be put out to bid every five years. Current timber manager Forest Investment Associates' contract expires in March. The firm is invited to rebid.

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Ohio Police & Fire builds up its timber commitments

Ohio Police & Fire builds up its timber commitments | Timberland Investment | Scoop.it

Ohio Police & Fire Pension Fund, Columbus, committed $25 million to Brookfield Brazil Timber Fund II, confirmed spokesman Eric Eramo.


The commitment is the $12 billion pension fund's fourth to timber; it created a 3% target allocation to the asset class in March 2010. The fund committed $100 million each to Forest Investment Associates and Hancock Timber Resource Group and $50 million to Brookfield Timber Fund V earlier this year.

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Ohio Police & Fire's timber commitment to climb

Ohio Police & Fire's timber commitment to climb | Timberland Investment | Scoop.it

Ohio Police & Fire Pension Fund, Columbus, plans to make an additional $175 million in commitments to timber in the coming months...


The $11.8 billion pension fund created a 3% target allocation to timber in March 2010. The fund in January hired its first timberland managers — Forest Investment Associates and Hancock Timber Resource Group — to run $100 million each.


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This week's featured TIMO: Forest Investment Associates

This week's featured TIMO: Forest Investment Associates | Timberland Investment | Scoop.it

Forest Investment Associates (FIA), formed in 1986, is a Registered Investment Adviser providing investment management services for timberland investors. Operating out of our Atlanta, Georgia, U.S. headquarters and multiple U.S. field offices, we acquire and manage timberland portfolios for corporate pension plans, state and municipal retirement systems, endowments, foundations and family offices.

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[Editor's note: our "Featured TIMO" series does not imply an endorsement of the subject organization. It is presented only to help educate readers about this corner of the Timberland Investment space.]

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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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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.
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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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Blue Source and Forest Investment Associates Register 1st Wisconsin Forest Carbon Project with California's Cap and Trade Program

Blue Source and Forest Investment Associates Register 1st Wisconsin Forest Carbon Project with California's Cap and Trade Program | Timberland Investment | Scoop.it
As project manager for Forest Investment Associates (FIA), Blue Source today announced the registration of over 695,000 forest carbon offsets with California’s cap and trade carbon market. Situated on approximately 30,000 acres of mixed hardwood forest in Wisconsin, the Blue Source- Goodman Improved Forest Management Project represents Blue Source’s second Lake-State based forest project under California’s program.

As a result of pre-contracted sales conducted by Blue Source, the project will immediately generate carbon revenue for FIA. In addition to marketing the project credits, Blue Source provided development services, ushering the project from conception through inventory development, carbon modeling, 3rd party verification, and credit registration.
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Timberland Investing: What You Need To Know Now

Timberland Investing: What You Need To Know Now | Timberland Investment | Scoop.it

The following research was conducted by Forest Investment Associates (FIA), a timberland investment firm with $3.9 billion of U.S. timberland assets under management as of the 4th quarter 2012. Our conclusions show:

  • Timberland returns have varied over time as the industry has matured. Returns were negative for a year after the financial crisis of 2008, but have since been increasing.
  • Long-term demand drivers for timber remain strong and most indicators predict a meaningful mid- to long-term recovery in timber prices. This recovery should support stronger timberland investment returns in the future.
  • In the face of increasing demand, a significant reduction of timber supply is projected, primarily due to a pine beetle epidemic in western Canada.
  • Timberland returns show significant positive correlation with inflation, while stocks and bonds do not. Timberland returns have historically exceeded the long-term rate of inflation, while stock and bonds have not.
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Pennsylvania Municipal considering core real estate, timber manager searches; re-hires FIA

Pennsylvania Municipal considering core real estate, timber manager searches; re-hires FIA | Timberland Investment | Scoop.it

Pennsylvania Municipal Retirement System, Harrisburg increased its overall target allocation to real estate and might search for core real estate or timber managers later this year.

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Separately, the pension fund rehired timber manager Forest Investment Associates to run about $80 million. An RFP was issued in January to comply with state law that external manager services be put out to bid every five years. There were no other finalists.

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Pennsylvania Municipal pension fund to look for timber manager

Pennsylvania Municipal pension fund to look for timber manager | Timberland Investment | Scoop.it

Pennsylvania Municipal Retirement System, Harrisburg, in the next two or three weeks will search for a timber manager to run $70 million.

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The contract of the pension fund's current timber manager, Forest Investment Associates, expires in March 2013. State law requires that external manager services be put out to bid every five years, Mr. Allen said in a telephone interview. The firm can rebid.

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Ohio Police & Fire commits another $50 million to timber

Ohio Police & Fire commits another $50 million to timber | Timberland Investment | Scoop.it

Ohio Police & Fire Pension Fund committed $50 million to Brookfield Timberlands Fund V and $35 million to private equity fund Advent International GPE VIII.

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The pension fund in January hired its first timberland managers — Forest Investment Associates and Hancock Timber Resource Group — to run $100 million each.

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Ohio Highway Patrol panel wants FIA to replace Timbervest

Ohio Highway Patrol panel wants FIA to replace Timbervest | Timberland Investment | Scoop.it
Ohio State Highway Patrol Retirement System's investment committee recommended hiring Forest Investment Associates to manage a $29 million timber portfolio.

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Ohio Highway Patrol whittles timber manager hopefuls


Ohio State Highway Patrol Retirement System, Columbus, named RMK Timberland Group, Forest Investment Associates and Timberland Investment Resources as finalists in its search for a timber manager to run about $29 million, confirmed Mark Atkeson, interim executive director.

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