Timberland Investment Resources, a Timberland Investment Management Organisation (Timo), is buying 50,000 acres of Wisconsin-based forest land for a separate account client, from Plum Creek, the timberland owner and manager.
The acquisition represents an extension of the Timo’s exposure to Wisconsin forestry after it first invested in the region in 2013, according to Tom Johnson, managing director at Timberland Investment Resources.
“We see Wisconsin as an attractive location for timberland investment because of the strength of its timber markets, the size and diversity of its forest products industry and the cultural connection the state’s citizens have with their forestry heritage,” he told Agri Investor in an email.
“This investment represents another opportunity to provide our clients with geographic diversification,” he added, “which we believe will enhance their investment performance by lowering risk and improving total return.”
The firm, which handles $1 billion worth of assets, will manage the forest land with an emphasis on selling hardwood and softwood timber products to local and regional processors, according to Johnson.
“We also will maintain traditional land uses and access protocols for public and private recreation, including hunting, hiking, and fishing,” he wrote, continuing the relationships that Plum Creek established with state and local agencies and mainstream conservation groups.