TORONTO – Ontario Teachers’ Pension Plan Board announced it has completed a redemption transaction to assume the direct ownership of approximately 870,000 acres of loblolly pine forest spread throughout the southern United States. 

According to a separate press release issued by MetLife Investment Management (MIM), Ontario Teachers’ paid $625 million for the timberlands. MIM, the institutional asset management business of MetLife Inc., said it has placed long-term, first mortgage loans secured by approximately 832,000 acres of timberland.
 
The transaction was administered by Tamarack Timberlands LLC, an investment vehicle owned by Ontario Teachers’. The timberlands are certified by the Sustainable Forestry Initiative. The pension group said the timberlands provide “significant diversification benefits to Ontario Teachers’, including diversity of locations, customers, and tree age classes."

Ontario Teachers’ has invested in these timberland assets indirectly since 2006. The newly-completed transaction will give Tamarack Timberlands full control and governance of the assets and create greater opportunities to implement long-term value creation initiatives, the group said. Resource Management Service LLC (RMS), one of the world's largest providers of timberland investment services, will continue to act as the timberland investment manager for the asset.

“A responsible, sustainable and long-term approach to forestry has value beyond timber production,” said Christopher Metrakos, managing director, Natural Resources at Ontario Teachers’. “These assets will continue to provide Ontario Teachers’ with stable and robust cash yields as well as long-term capital appreciation, while also acting as a natural climate solution to help mitigate the impacts of climate change.”

With net assets of C$227.7 billion as of June 30, 2021, Ontario Teachers’ is Canada’s largest single-profession pension plan. The plan’s board invests in a diverse global portfolio of assets and administers the pensions of the province of Ontario's 331,000 active and retired teachers.