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PORT LUDLOW, WA-Poulsbo-based timber company Pope Resources LP announced late yesterday that it finally inked a deal for its 1,300-acre Port Ludlow development. HCV Pacific Partners, headquartered in San Francisco, is paying $16.7 million. Of that, $11 million is up-front cash with the remainder to be paid under a three-year promissory note.

The resort property includes the 37-room Heron Beach Inn, a 300-slip marina and a 27-hole golf course. Real estate development assets include residential sites in a master-planned community, which have yet to be built. That is, about 100 developed lots and raw land sufficient for 450 additional residential lots.

Pope went public last December with its intention to get out of the real estate development business by selling the Port Ludlow assets held in its subsidiary, Olympic Resource Management. Pope’s plans are to focus entirely on timber activities.

In January, GlobeSt reported that HCV had shown interest in Port Ludlow, but nothing was confirmed, and the deal went underground until surfacing yesterday with the formal announcement. HCV will purchase the resort and development under a subsidiary named Port Ludlow Associates LLC.

According to Ludlow’s new owner, HCV was formed in 1989 by combining the resources of a local real estate development company and Hsin Chong International Holdings Ltd., headquartered in Hong Kong. HCV is bifurcated into residential and commercial arms and owns two resort/hotel properties in California, the Resort at Squaw Creek in Lake Tahoe and the Hyatt Regency in Sacramento’s Capitol Park. Scheduled for completion in 2002 is its 350-room Montalcino luxury resort in the Napa Valley. HCV places the value of its assets under management at $575 million.

Pope says it will use the proceeds of the sale to pay down debt incurred earlier in the year in the acquisition of 44,500 acres of timberland in southwestern Washington. In that transaction, Pope paid $54 million to Plum Creek Timber Co. of Seattle. On August 1st, Pope Resources reported net income of $0.6 million, or 14 cents per diluted ownership unit, on revenues of $15.3 million for the quarter ending June 30th. This was a substantial drop from first quarters 2000′s net income of $1.5 million, or 32 cents per diluted ownership unit, on revenues of $14.1 million. Allen E. Symington, the company’s chairman and CEO says the dip was due primarily to a “combination of higher depletion expenses and weaker log prices.”

Pope Resources owns or manages over 600,000 acres of timberland and development property in Washington, Oregon, California, and British Columbia. It also engages in forestry consulting and timberland investment management services to third-party owners and other timberland managers. Altogether, Pope and its predecessors have been in the timber business for more than 150 years.

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