NEW YORK, May 14, 2018 – The BTG Pactual Timberland Investment Group (“TIG”), one of the largest timberland managers in the world, today announced it has entered an agreement to acquire 1.1 million acres of prime East Texas timberlands for US$1.39 billion as part of a preferred equity investor consortium in a joint venture with CatchMark Timber Trust, Inc. (NYSE:CTT).
“We believe this investment reinforces TIG’s flexibility and creativity in approaching different types of timberland transactions,” said Gerrity Lansing, head of BTG Pactual’s Timberland Investment Group. “We are pleased to have structured a preferred equity position in this attractive timberland asset, working with first-class institutional investors and in partnership with CatchMark.”
This timberland transaction – the largest of its kind in the U.S. since 2007 – is notable due to its scale, high-quality assets, existing supply agreements and proximity to attractive homebuilding markets. The timberland is comprised of 66% high-quality pine plantations with above-average site index (74 feet at age 25) and strong stocking that is expected to produce an average of almost four million tons in annual harvest volumes for the next 15+ years.
“TIG is an important component of BTG Pactual Asset Management, providing our investors with access to some of the highest-quality, sustainably-managed commercial timberland in the US, Latin America, South Africa and Eastern Europe,” said Steve Jacobs, CEO of BTG Pactual Asset Management.
TIG was joined by Medley Management Inc., Highland Capital Management and a consortium of other institutional investors in the joint venture with CatchMark. The transaction is expected to close within 90 days, subject to customary closing conditions, with Campbell Global acting as the seller on behalf of several institutional investors. Upon closing, TIG will join the Board of the joint venture.
About BTG Pactual Asset Management
BTG Pactual Asset Management is a world class global markets and Latin America manager, with strategies spanning equities, fixed income, hedge funds, infrastructure, timberland, real estate and private equity. As of March 31, 2018, BTG Pactual Asset Management had US$49.5 billion in assets under management. As part of BTG Pactual Asset Management, The Timberland Investment Group has nearly US$3.5 billion in assets and commitments, and more than 2 million acres under management throughout the United States, Latin America, Eastern Europe and South Africa.
For more information please see www.btgpactual.com or www.timberlandinvestmentgroup.com