CatchMark Completes $167M In 2 Separate Deals
The REIT is acquiring 18,063 acres in Oregon and selling 56,000 acres in the southwest.
ATLANTA–Following its blockbuster acquisition of 1.1-million acres earlier this year, CatchMark Timber Trust is acquiring 18,063 acres of Oregon timberlands for $88.8 million from Forest Investment Associates, marking its entrance into the Pacific northwest. In a separate transaction, it is selling 56,000 acres of timberlands in Texas and Louisiana to FIA for $78.5 million, reducing its regional exposure. “Taken together these transactions diversify CatchMark’s revenue streams and markets through effective recycling and deployment of capital,” says Jerry Barag, CatchMark’s President and CEO, in a prepared statement. The transactions are expected to increase annual timber sales revenue by approximately $1.6 million.
The Properties
In Oregon, the to-be-acquired timberlands — known as the Bandon Property — are situated within the Douglas fir/western hemlock zone between the Coos Bay markets and Roseburg mills approximately 150 miles southwest of Portland.
CatchMark acquired the southwest region portfolio, located across several counties in East Texas and western Louisiana, in four separate transactions during 2014 and 2015. The property is comprised of 79% pine and 21% hardwood by acres and 1.8 million tons of merchantable inventory, consisting of 51% sawtimber and 49% pulpwood.
The timberlands are selling for $1,533 per acre when including the timber reservations, the company says. CatchMark will retain approximately 370,000 tons of merchantable inventory (52% sawtimber/48% pulpwood) to be harvested over the next 18-24 months.