ATLANTA – Timbervest LLC, an Atlanta-based company that manages timber-related assets and investments, today announced it acquired an additional 20,000 acres of timberland through two acquisitions for its Timbervest Partners III, LP (TVP III) investment fund. The $480 million commingled fund consists of approximately 260,000 acres of timberland located throughout the country and is comprised of institutional and high-net-worth investors.
“We are excited about the addition of these two institutional-grade properties to our timberland portfolio,” said Bill Boden, managing partner of Timbervest. “We believe both properties will be strong performers and generate value during the lifespan of this fund. The acquisitions also show our commitment to acquiring high quality timberland with strong prior management practices that can be leveraged at exit in the real estate- and timber-related markets for maximum returns.”
Jasper, Alabama Property
The 6,700-acre property consists of several large tracts of land in northwest Alabama, located approximately 50 miles west of Birmingham and 45 miles north of Tuscaloosa. The landscape predominately consists of rolling hills and valleys with occasional steep terrains, ridgetops and well-drained bottomlands. Several tracts feature pine-covered ridgelines and steep-sloping hills with mature hardwoods.
The Jasper property contains a large amount of high quality, harvestable and mature timber, as well as significant quantities of fast-growing young plantations that will reach merchantability during the fund’s life. The property has been well-managed by its previous owner. This acquisition brings TVP III’s ownership of Alabama timberlands to approximately 20,000 acres.
Azalea, Virginia Property
Located east of Interstate 95 on the Virginia coastal plan, the 14,000-acre Azalea property is 65 miles south of Richmond and approximately 30 miles from the North Carolina state line. It has a long history of industrial timberland management and almost all of the acreage consists of pine plantations of various age classes.
The terrain is typical of the upper coastal plain with much of the topography being flat to gently rolling. The property offers some recreational and rural residential higher and better use opportunities at exit, but the majority of the acreage will remain in the timberland category for the foreseeable future. More importantly, the property provides strong future cash flow potential as younger pine plantations become merchantable and older plantations reach financial maturity. Following the transaction, TVP III’s ownership of Virginia timberlands is approximately 60,000 acres.
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