US timberland investment fund Molpus Woodlands Group has acquired 119,000 acres of timberland spread across six counties in Louisiana, according to company representatives.
A source with knowledge of the deal told Agri Investor that the acquisition was the first from Molpus Fund IV, which closed in October 2014. At $662.5 million, the fund was oversubscribed by $162.5 million. The source could not confirm the dollar value of the land located between the cities of Lake Charles and Alexandria.
“We are excited about this opportunity to grow our existing operational presence and established relationships. We look forward to …supplying quality raw materials to the vital wood-consuming facilities of the region,” said Ken Sewell, chief operating officer of Molpus Timberland in a statement.
The news comes in the same week that it was announced Weyerhaeuser and Plum Creek would merge, a move that the companies say will save their combined REIT $100,000 a year in costs. Earlier this year, Plum Creek entered into a joint venture with Silver Creek Capital Management called Twin Creeks Timber, with the aim of growing a $1 billion portfolio by selectively acquiring timberlands from third parties.
Molpus will manage the new land, bringing the total amount of timberland managed by the company to 1,875,000 acres, valued at more than $2 billion, including 326,000 acres in Louisiana, according to a company press releases. According to a source, the company has no plans to make changes to existing timber operations at the property, which predominantly produces southern pine trees.
“It will be business as usual,” said the source. “Customers and residents of the area shouldn’t expect much changeover.”