CatchMark Timber Trust, Inc. announced an agreement to acquire 14,923 acres of prime timberlands near the southeast coast of Georgia for $43.3 million, excluding closing costs. The to-be-acquired timberlands in Long and McIntosh counties, the Coastal Georgia Acquisition, will expand CatchMark's positioning in one of the most competitive wood baskets of the U.S. South, increasing its regional holdings by 36%. Closing of the Coastal Georgia transaction is expected by the end of the year.
The Coastal Georgia Acquisition includes 72% pine plantations with stocking of 81 tons per acre. Approximately 92% of the inventory volume is pine and 65% of the inventory volume is chip-n-saw or sawtimber. 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.
CatchMark also announced that earlier this week the company closed on the purchase of 4,641 acres of premier timberlands located in southeastern South Carolina (Colleton County)—the Carolina Midlands V Acquisition—for $10.9 million, exclusive of closing costs. Carolina Midlands V comprises high-quality, heavily-stocked southern pine timberlands close to strong coastal mill and export markets. Based on current estimates, the Carolina Midlands V tracts contain approximately 224,000 tons of merchantable timber, comprised of 94% pine plantations or convertible natural pine stands by acreage and 65% chip-n-saw or sawtimber by tons.
The Carolina Midlands V transaction was funded through CatchMark's multi-draw term credit facility.
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.
