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Prentiss & Carlisle
September 10, 2018 1:30 PM
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Investors tired of poor returns, are getting out of timberland — at what some say is the wrong time. Leading the exit are CalPERS and Harvard. The California Public Employees' Retirement System, Sacramento, in the third quarter sold most of its $2 billion timberland portfolio, with few plans of investing again; instead, the $358.9 billion system will focus on core real estate. CalPERS' consultant said the fund sold the investments at a loss.
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CalPERS' forestland portfolio underperformed its benchmark for the one, three, five and 10 years ended June 30. The portfolio earned 1.9% compared to the 3.8% benchmark return for the year; an annualized -2.4% (3.4% benchmark) for the three years; -1% (6.1%) for the five years; and -1.1% (4.1%) for the 10 years ended June 30. These returns do not include additional markdowns from the sale of the Crown Pine Timber portfolio, Mr. Junkin said. Meanwhile, Cambridge, Mass.-based Harvard Management Co., which manages Harvard University's $37.1 billion endowment, is also selling off portions of its timberland portfolio, sources said. Harvard Management Co. reported in September that natural resources, including timber, experienced a challenging year in its 2017 fiscal year and the endowment took write-downs and sold assets, some at or above their previous valuations. "Our natural resources platform will take multiple years to reposition," the report noted without providing details. Harvard is reportedly attempting to sell majority or minority stakes in a $700 million portfolio of timberland in South America. Fundraising by timber investment managers is way down. Two funds raised a combined $600 million so far in 2018, down from seven funds that raised $1.4 billion in all of 2017 and eight funds that raised $3.1 billion in 2008, according to data from London-based alternative investment research firm Preqin. More than 30 timberland funds manage about $57 billion of assets for investors "who cite the long-term investment horizon, low correlation with the general economy, biological growth regardless of economic conditions, and a relatively stable stream of cash flows as appealing characteristics of the asset class," according to a recent report by MetLife Inc.'s agricultural finance group, which oversees agricultural and timberland assets. Matthew Lynch, Hartford, Conn.-based managing director and head of real estate and private markets at UBS Asset Management, said poor returns are driving investors out of the asset class into other real asset sectors. Timberland assets earned 0.48% for the quarter ended June 30, down from 0.92% in the prior quarter and 0.7% in the second quarter ended June 30, 2017, the NCREIF Timberland index showed. The Total Timberland index had a 3.57% trailing return for the year ended June 30. Timberland market value per acre was $1,804 as of June 30, down from $1,824 a year earlier, according to NCREIF.
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Between January 2017 to June 2018, average prices for commonly traded lumber in the U.S. increased by 40%, according to the Wood Resource Quarterly. During the same period, sawlog prices were practically unchanged in the South and rose about 28% in the Western U.S.
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Some industry insiders say institutional investors are downsizing their timber exposure at the wrong time, when prices for timberland are way down. They also say the investors got into their current portfolios at the wrong time. *** Some timber managers and investors are buying timberland, seeing opportunities as some holdings are priced at a discount. In July, BTG Pactual Timberland Investment Group invested alongside British Columbia Investment Management Corp., Highland Capital Management, and Medley Management Inc. bought 1.1 million acres of prime East Texas timberland from CalPERS for $1.39 billion. The market value of CalPERS' investment in Crown Pine Timber — known as Lincoln Timber, a hedge fund of one managed by timber management organization Campbell Global — was $1.6 billion as of June 30. In October 2007, CalPERS had committed $2.2 billion to invest in 1.5 million acres in eastern Texas and western Louisiana, documents on CalPERS' website show.
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Prentiss & Carlisle
February 2, 2018 6:10 PM
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IKEA Group (Ingka Holding B.V. and its controlled entities) acquired its first U.S. forest property, covering approximately 25,000 acres in Lowndes County, Alabama. The investment in forestry is part of a broader strategy to invest in the sustainable production of resources that IKEA Group consumes directly, such as energy, or indirectly through its products (wood raw material, recycled materials, etc.). IKEA Group also owns more than 250,000 acres of forest land in Europe, located in Romania and the Baltic States.
“As a responsible forest owner, we are interested in identifying and applying sustainable management methods that will allow us to preserve and even increase the quality of the forest over time,” says Krister Mattsson, Head of Financial Asset Management, IKEA Group. “Entering the US market is a milestone for our investments in forests, and we believe we will learn a lot here while implementing our long-term approach to forest management and applying for the Forest Stewardship Council (FSC) certification.”
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For its forest management in the U.S., IKEA Group has partnered with Campbell Global, a leader in sustainable timberland and natural resource investment, to oversee and operate the property.
“We are proud to be working with IKEA to promote our shared values,” said John Gilleland, CEO and Chairman of Campbell Global. “Responsible stewardship is the cornerstone of our culture. We are committed to managing sustainable, working forests to foster optimal forest health and provide direct benefits to local communities.”
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August 30, 2016 5:46 PM
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Campbell Global, a leader in sustainable timberland and natural resource investments that manages approximately 2.7 million acres (1.1 million hectares) worldwide, today announced the creation of two new leadership roles to further support the development and execution of the firm’s long-term strategic vision. Angie Davis will serve as the firm’s President, and David Rumker will serve as its Chief Investment Officer, both newly created positions. John Gilleland, Campbell’s Chairman and Chief Executive Officer, will continue to oversee the business. Ms. Davis has led Campbell Global’s business development and client service teams, and as President will continue to focus on client service, while also working closely with Chairman and CEO John Gilleland to execute Campbell Global’s growth strategy and further enhance its leadership role within the industry. By creating a senior position that focuses on both client service and strategy, the firm recognizes the importance of ensuring that client service remains a top priority as it develops a longer-term vision and succession planning process.
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The firm also announced that Stephen Levesque has been promoted to Managing Director of Operations, and Julie Lawrence has been promoted to Managing Director of Portfolio Management. Mr. Levesque joined Campbell Global 15 years ago and was previously employed with a natural resource consulting firm. Ms. Lawrence has been employed with the firm over 25 years and began her career in public accounting.
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Prentiss & Carlisle
December 22, 2015 11:24 AM
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Campbell Global has completed the purchase of over 100,000 acres of timberlands in the Puget Sound region of Washington state. The property is located east of Seattle and was previously managed by the Hancock Timber Resource Group.
The property, which has been well managed as productive timberland for many years, is comprised mostly of Douglas fir and Western Hemlock. The majority of the land base is also subject to a conservation easement that limits future development while it is also privately managed as a “working forest.”
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Prentiss & Carlisle
September 12, 2014 12:12 PM
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Campbell Global doesn't seek the spotlight. The firm prefers to tend to its knitting, acquiring and managing forestland for investors. But, by all accounts, the people who work there are a happy bunch, which is why the company is being honored this year as one of The Oregonian's Top Workplaces. Employees say their opinions are respected, managers are approachable and the workplace friendly and flexible.
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The 33-year-old company, known until this spring as The Campbell Group, manages more than 3.1 million acres of timberland in the U.S. west and south, and in Australia. It has more than 300 employees, ranging from people who tend trees to those who pull the trigger on million-acre purchases of forested land. Chief executive John Gilleland leads a six-member executive team based in downtown Portland.
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Founder Duncan Campbell sold a stake in the Campbell Group in 1989 to United Asset Management. United Asset was acquired 11 years later by Old Mutual Asset Management, which bills Campbell Global as an affiliate. Campbell Global's assets are marketed to institutional buyers.
"We place a high value on relationships with clients and with our employees," Gilleland said. "Receiving this award is a great affirmation of those values."
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March 19, 2014 2:25 PM
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NEW Forests' successful raising of $707 million for a second fund adds weight to suggestions it could be competing strongly to buy Forest Enterprises Australia, which is on the market through advisory firm Gresham, and potentially the Gunns portfolio.
New Forests has previously been named by sources as among the five groups in the contest to buy FEA.
The other four are international contenders, including US-based Campbell Group, GMO Renewable Resources, Global Forest Partners and Resource Management.
FEA was put on the market in December through Gresham and Deloitte, shortly after timber company Gunns came up for sale. The sales price for the forestry business could be anywhere between $200m and $400m, sources said.
Initial bids closed last month for the 97,900ha of mature hardwood forests and 46,000ha of land in NSW, Queensland and Tasmania. It is thought that the players competing to buy FEA would have also thrown their hat in the ring to buy the $400m-odd portfolio of Gunns forestry assets, which are being sold through investment bank Moelis and Korda Mentha.
New Forests would not comment on its interest in either of the offerings.
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November 11, 2013 11:10 AM
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The mystery land manager tapped to manage one of the largest, most complex logging operations in history turns out to be mostly a land broker that bundles timber sales. Good Earth Power last week announced it will contract with The Campbell Group to manage the first 300,000 acres of a thinning and forest restoration contract that could one day encompass some 2.6 million acres. The Campbell Group manages 3 million acres as a land and timber broker, but generally hasn’t actually operated the timber-cutting crews that will actually implement an unprecedented plan to use the timber industry to restore dense, healthy, fire-prone forests to healthy conditions not seen for a century.
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April 23, 2013 11:14 PM
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Plum Creek Timber Company, Inc. (NYSE: PCL) today announced the completion of the purchase of approximately 46,000 acres of timberlands in western Georgia and eastern Alabama from the Campbell Group, LLC for approximately $72 million.
"We are pleased to add these well-managed timberlands to our existing asset base in this attractive timber market," said Rick Holley, Plum Creek chief executive officer. "We're uniquely positioned to efficiently integrate these lands into our operations and generate an attractive return for our investors."
Plum Creek is one of the largest private landowner in the nation, and most geographically diverse, with approximately 6.4 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest. For more information, visit www.plumcreek.com.
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December 11, 2012 10:18 AM
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August 23, 2012 1:32 PM
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Protestors stormed Labor's city headquarters yesterday after news the rights to harvest timber in the South East will be sold to The Campbell Group.
The workers for timber firm Carter Holt Harvey initially gathered at the Crowne Plaza Hotel in Hindmarsh Square at 12.15pm, where Premier Jay Weatherill was due to address a luncheon. ... It has been reported The Campbell Group put forward the highest bid, of about $620 million. The group, which was founded in 1981 and manages more than 1.2 million hectares or about $5.2 billion of timber assets, represents a number of investors, including Australia's Future Fund. ... Ultimately, the conditions of sale will form part of a binding legal contract with the successful bidder, which will include regular reporting, compliance monitoring and sanctions for not meeting those conditions. Ownership of the land, water and carbon rights will remain with the Government.
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April 4, 2012 8:22 AM
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With outdoor marijuana-growing season about to begin, private and public officials are invoking the memory of slain Fort Bragg City Councilman Jere Melo to bolster their rallying cry of "take back our forests" from illicit growers... ... The organized effort is one of the first in the region to emphasize protecting private lands from the depredations of dope growers. Many of its key leaders are associated with private timberland management operations. ... The owners of properties managed by Campbell Timber Management have spent more than $300,000 in the past eight years cleaning up their land...
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May 22, 2018 10:26 AM
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http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd"> CatchMark Timber Trust, Inc. (NYSE: CTT) announced today an agreement to acquire 1.1 million acres of prime East Texas timberlands for approximately $1.39 billion in a joint venture with a consortium of institutional investors, including BTG Pactual Timberland Investment Group, Highland Capital Management, Medley Management Inc., and a major Canadian institutional investor. The property is being sold by Campbell Global, on behalf of the institutional owners of the property, in a transaction expected to be completed within 45 to 60 days, subject to customary closing conditions.
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The approximately $1.39 billion transaction has been structured by Campbell Global as a sale of the general and limited partnership interests of the entities that own the timberland assets. CatchMark will fund its investment of up to $227.5 million in the joint venture through borrowings under its multi-draw term loan and cash on hand. CoBank ACB will act as the agent for a lender syndicate and provide a $750 million financing facility, of which up to $650 million will be funded at closing. *** The transaction provides CatchMark with the following attractive investment attributes: - High Quality Asset: The timberlands feature an above-average site index (74 feet at age 25) and a maturing age class profile with access to top quartile mills and strong nearby end markets (Austin, Dallas, and Houston).
- Attractive Basis: A $1,264 per acre acquisition cost basis, before transaction costs, compares favorably to regional industry benchmarks and positions the joint venture to generate potential premium returns.
- Value-Add Opportunity: A rapidly improving inventory profile will result in enhanced harvest potential and provide the opportunity to restructure operations to optimize future cash flow and value.
- Significant Growth to Existing Investment Management Business: In partnering with new, blue-chip institutional investors which are making a substantial capital commitment, this latest venture complements and expands CatchMark's joint venture strategy which has produced strong financial results in its first year.
- Immediately CAD Accretive: The transaction is estimated to be 2-3% CAD accretive in year one. The joint venture will deliver to CatchMark contracted income from asset management fees and the potential for attractive promotes.
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John Rasor, CatchMark's current Chief Operating Officer, will transition to serve as President of the newly formed joint venture company, which will be named TexMark Timber Treasury (Triple T Timberlands). CatchMark's Senior Vice President of Forest Resources Todd Reitz will transition to oversee operations for CatchMark's existing properties. Rasor has strong existing relationships with the largest wood supply customers in the East Texas market and both he and Jerry Barag have familiarity with the to-be-acquired Texas timberlands after operating in proximate markets when they ran TimberStar. At TimberStar, Barag and Rasor acquired more than 1.2 million acres of timberlands in Texas, Louisiana, Arkansas, and Maine on behalf of a consortium of institutional investors for $1.35 billion. They structured the acquisition, using the first and only timberland REMIC securitization completed to date totaling $800 million, and sold the properties for $1.9 billion less than four years later. Forest Resource Consultants and American Forest Management will execute land management and accounting functions on the Triple T Timberlands, respectively, as they do at other CatchMark-owned properties. Raymond James acted as financial advisor to CatchMark in the transaction; Alston & Bird LLP and Smith Gambrell & Russell, LLP served as legal advisors to CatchMark. Gibson Dunn and Proskauer Rose served as legal advisors to the group of institutional investors. Perella Weinberg Partners LP acted as financial advisor and Greenberg Traurig, LLP, Schwabe, Williamson & Wyatt and Polsinelli PC served as legal advisors to Campbell Global and its institutional investors in the transaction.
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December 12, 2016 7:01 PM
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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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May 4, 2016 5:30 PM
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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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November 11, 2015 6:07 PM
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The Molpus Woodlands Group, LLC (Molpus), a timberland investment management organization headquartered in Jackson, Mississippi, announced today, on behalf of a client, the successful purchase of approximately 192,000 acres of timberland and a timber lease in southwest Louisiana.
The timberland, located in six counties between the cities of Lake Charles, Louisiana to the south and Alexandria, Louisiana to the north, is a primarily southern pine plantation property that has been in timber production for decades. The timberland is located in a vibrant sawtimber and pulpwood market area and it provides raw material to forest products customers in a variety of domestic market segments. Molpus currently maintains offices in Bossier City, DeRidder and Monroe, Louisiana to oversee the management of an additional 207,000 acres in this state.
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August 7, 2014 5:13 PM
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The Nature Conservancy, Texas A&M Forest Service, and the U.S. Forest Service have collaborated to purchase a conservation easement on 4,785 acres of forestland in the Longleaf Ridge area of East Texas, permanently protecting some of the best longleaf pine habitat in the state.
The groups purchased the easement for $2,277,000 from Crown Pine Timber LP, a limited partnership managed by Campbell Global, a timber investment and management firm based in Portland, Oregon. Campbell Global manages over 1 million acres of timberlands in East Texas on behalf of Crown Pine Timber.
The easement was funded through the Forest Legacy Program, a federal program managed by the USDA Forest Service. The Nature Conservancy provided $569,250 in matching funds.
This type of conservation – often called a “working forest” conservation easement – keeps forestlands in private ownership while conserving the land for future generations. Landowners and local communities continue to realize economic gain from timber management while the forest provides other benefits such as watershed protection, wildlife habitat, recreation and scenic values.
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March 19, 2014 11:33 AM
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Founded in 1981, The Campbell Group, a full-service timberland investment firm, has changed its name to Campbell Global. The name change affirms the company’s core values while reflecting its global expertise.
“For more than three decades, The Campbell Group has been a leader in timberland investment management,” said John Gilleland, Chief Executive Officer and Chairman. “We are expanding our global reach and offering additional expertise and analysis, while maintaining the strongest commitment to our existing clients, partners, and assets.”
Campbell Global manages more than 3.1 million acres across the west and south of the United States and in South Australia, representing approximately $6.3 billion in assets. The firm has over 300 employees.
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October 28, 2013 10:32 AM
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Good Earth Power (GEP) is proud to announce the appointment of The Campbell Group as the forest management company that will implement GEP’s Four Forest Restoration Initiative (4-FRI) stewardship contract in Northern Arizona. The Campbell Group will be responsible for managing forest restoration operations under the 4-FRI contract and will work with GEP to achieve the project’s objectives. As one of the largest timber investment managers in the world, with over 3 million acres under management, The Campbell Group brings decades of timberland management experience and industry knowledge.
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March 28, 2013 10:59 AM
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A supply shock associated with the epidemic of mountain pine beetles is one of three factors which will drive a surge in timber prices throughout Canada and the United States in 2013 and beyond, a new report predicts.
In its latest edition of Timber Trends, The Campbell Group LLC described 2013 as the “beginning of a long term bullish trend for the timber industry.” While this is welcome news for timber manufacturers and investors, it is not so good for builders in Canada as it will add to material costs at a time of an anticipated slowdown in housing construction.
“Do you remember when you were a kid and your parents told you that money didn’t grow on trees?” forest economist and report author Bruce P. Glass asked, referring to the prospects of forestry as an asset for investment.
“Unfortunately for you, what your parents told you was only partially true. Sure, dollar bills don’t grow on trees. But the trees themselves are worth big bucks.”
The report quotes Grantham Mayo van Otterloo (GMO) chief investment strategist Jeremy Grantham as saying that timber prices would rise by as much as 6.5 per cent over seven years.
Glass says prices could go even higher, and that three factors lie behind these expectations: - First and foremost is the mountain pine beetle bug epidemic...
- Combined with an increase in demand from China...
- Add that to demand pressures associated with a likely recovery in US housing construction...
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October 17, 2012 11:28 PM
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The price has now been revealed for the sale of future harvesting rights for forests in the south-east of South Australia. The Government said the harvest rights were sold for $670 million, achieving a price above the reserve.
The buyer is a consortium led by US company The Campbell Group, trading in Australia as OneFortyOne Plantations.
The sale of forward timber rotations has attracted protest in the south-east region, amid concern about jobs and the future for the timber industry.
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August 23, 2012 1:27 PM
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Unionists have protested as forward timber rotations in the south-east of South Australia are sold to a consortium led by The Campbell Group.
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March 19, 2012 4:12 PM
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The Campbell Group, LLC is a vertically integrated, full-service timberland investment advisory firm founded in 1981, to acquire and manage timberland for investors. Our focus is exclusively on creating acquisition opportunities and managing them to produce superior risk-adjusted returns. The Campbell Group manages over three million acres representing approximately $5.4 billion in timberland assets.
[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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