The buyers' names will be released when the deals close, predicted to take place before the end of June. That same timeframe is set for a 50,000-acre sale of timberland near Merryville, LA, which is priced at $35 million.
The Cleveland tract, about 45 miles northeast of Houston, is under option for $38 million while the Honey Island land is ticketed to bring $39 million. Honey Island is positioned 86 miles northeast of Houston.
Louisiana-Pacific is still looking for buyers for 545,112 acres in a disposition that got underway in May 2002. A company contact tells GlobeSt.com that the land is being sold in an ongoing debt reduction program.
Louisiana-Pacific spent the better part of 2002 in talks with one buyer for the 705,000 acres, all in Texas and Louisiana. Then, the seller turned its attention to parceling off the land instead of one large sale. According to the company contact, several prospective buyers were identified in the search for a single taker. Within weeks of shifting the strategy, the Portland, OR-based Louisiana-Pacific had three signed letters of intent.
"Upon analyzing the bids received and the resulting discount that would be necessary to pursue a single sale, we determined that multiple transactions would bring together greater returns to our shareholders," Bill Hebert, Louisiana-Pacific's vice president of business development, said in a prepared statement.
The contact says the Cleveland property's most predominant timber supply is southern yellow pine. Part of the forest land had been harvested and is now regenerated.
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