Deals

Rayonier purchases timber properties from BTG Pactual

The timberland real estate investment trust paid nearly $60m in two transactions in Louisiana and Oregon.

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Rayonier, the Florida-based timberland real estate investment trust (REIT), has acquired nearly $60 million worth of timberland from BTG Pactual Timberland Investment Group, the Brazilian fund manager.

The properties covering about 18,000 acres of timberland in south-west Louisiana and north-west Oregon across two separate transactions are near Rayonier’s existing landholdings, according to press release. The acquisitions expand the REIT’s ownership in Louisiana to about 150,000 acres and Northwest ownership to 374,000 acres.

Rayonier manages 2.7 million acres of working forests in the US and New Zealand to supply timber to a wide variety of markets including pulp, paper, lumber, renewable energy production and other wood products, according to its website.

In the second quarter of 2015, Rayonier also purchased 4,600 acres in Florida and Georgia through a series of small transactions with non-industrial private landowners, according to the press release.

“The properties have been well-managed and are high-quality assets located in strong timber markets. These transactions reflect our disciplined growth strategy to focus on select acquisitions that upgrade our land portfolio, grow our sustainable harvest and generate accretion to our cash available for distribution per share,” David Nunes, Rayonier president and chief executive, said in a statement.

Year-to-date, Rayonier has acquired 35,000 acres of high quality timberland in the US South and Pacific Northwest for a total of approximately $88 million.

According to Rayonier, it increases its timberland holdings and upgrade the quality by evaluating every acre, divesting non-strategic timberlands and re-investing in strategic timberlands. Rayonier’s forestry operation focuses on sustainability, wildlife sensitivity, water quality, conservation and safety.

As of May 2015, BTG Pactual Timberland Investment Group manages $3 billion in assets and commitments and has 1.9 million acres under management, according to an executive summary. As of May, the firm had executed more than 225 transactions since inception.