Timberland ownership company CatchMark closes $43.3M acquisition
By CatchMark Timber Trust Inc.
Nov. 1, 2017 - CatchMark Timber Trust, Inc. has acquired 14,923 acres of prime timberlands near the southeast coast of Georgia for $43.3 million, excluding closing costs.
The timberlands in Long and McIntosh counties, the Coastal Georgia Acquisition, expand CatchMark's positioning in one of the most competitive wood baskets of the U.S. South, increasing its regional holdings by 36 per cent.
The acquisition includes 72 per cent pine plantations with stocking of 81 tons per acre. Approximately 92 per cent of the inventory volume is pine and 65 per cent of the inventory volume is chip-n-saw or sawtimber with an average pine plantation age of 19 years.
The transaction's harvest productivity is expected to be 7.6 tons per acre per year, adding approximately 110,000 tons per year to CatchMark's harvest over the next decade. The transaction includes a favorable long-term supply agreement and the timberlands' location provides proximity to a significant number of local mill customers, enhancing the merchantability of CatchMark's harvests in the region.
CatchMark funded the acquisition with net proceeds from its recently-closed public equity offering.
CatchMark Timber Trust, Inc. is a self-administered and self-managed, publicly-traded REIT that strives to deliver superior risk-adjusted returns for all stakeholders through disciplined acquisitions, sustainable harvests and well-timed sales. Headquartered in Atlanta and focused exclusively on timberland ownership, CatchMark began operations in 2007 and owns interests in approximately 502,600 acres* of timberland located in Alabama, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Texas. For more information, visit www.catchmark.com.