In its first Pacific Northwest purchase, the company gains 18,063 prime acres known as the Brandon Property from Forest Investment Associates (FIA) for $88.8 million. The acquisition was funded with cash on hand and borrowing under an amended credit facility. The property is located between Coos Bay and Roseburg, about 150 miles southwest of Portland. It features merchantable stocking of commercial conifers, most notably Douglas fir, along with sustainable pre-merchandisable acres. â€œThe Brandon investment is an attractive pure-play timber purchase, driven by long-term harvest yields in an exceptionally strong and dynamic market,â€ says CatchMark President and CEO Jerry Barag. Over 90 percent of the expected five-year average harvest volume will be derived from sawtimber. American Forest Management will handle property management. Separately, CatchMark agreed to sell 56,000 acres of timberlands in Texas and Louisiana to FIA for $78.5 million.
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