The Land Report


The Magazine of the American Landowner is an essential guide for investors, landowners, and those interested in buying or selling land. The award-winning quarterly is known for its annual survey of America's largest landowners, The Land Report 100.

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Page 91 of 99

DEALS OF /THEYEAR Timberland W hat many are touting as the tim- berland transaction of the decade actually was more than a decade in the making. Campbell Global sold 1.1 million acres in East Texas for $1.39 billion to a consortium of institutional investors led by CatchMark Timber Trust (CTT). Campbell made the deal on behalf of the California Public Employees' Retirement System (CalPERS), which liq- uidated most of its $2 billion timberland portfolio in 2018. ˆe backstory of the trans- action is as crucial, maybe even the driver, to the sale itself. CalPERS bought the Texas timberland in 2007 as part of $2.2 billion investment in 1.5 million acres in Louisiana and East Texas. Financier Carl Icahn had pressured the previ- ous owner, Temple-Inland, to sell o' the acreage. CalPERS o'cials thought they were getting a good invest- ment, but the Great Recession and subsequent slowdown in housing exposed a weakness in the overall deal structure. ˆe properties, when acquired, came with wood-supply obliga- tions to existing Temple-Inland manufacturing facilities. ˆese obligations, coupled with a Triple T Timberlands TEXAS SELLER California Public Employees' Retirement System SELLER INVESTMENT MANAGER Campbell Global BUYER TexMark Timber Treasury dba Triple T Timberlands BUYER INVESTMENT MANAGER CatchMark Timber Trust Billion Dollar Texas G USTAV SCH M I EG E III 2 0 18 T I M B E R L A N D DEAL OF /THE YEAR 90 L ANDREP ORT.COM e LandReport | SPRING 20 19

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