Austin, Texas, USA, 08 August 2011 -- (BUSINESS WIRE) -- Forestar Group Inc. (NYSE:FOR - News) today announced that it completed its previously announced sale of approximately 50,000 acres of timberland in Georgia and Alabama for USD 75 million to Plum Creek Timber Company, Inc. Forestar reserved mineral rights and retained an option to acquire the mitigation rights to approximately 1000 acres for use in mitigation banks.
“This sale represents a significant step toward completing our strategic initiatives to enhance shareholder value. We have sold approximately 169,000 acres of timberland in Georgia, Alabama, and Texas for approximately USD 270 million,” said Jim DeCosmo, president and chief executive officer.
Forestar Group Inc. operates in three business segments: real estate, mineral resources, and fiber resources. At the end of the second quarter 2011, the real estate segment owns directly or through ventures over 167,000 acres of real estate located in nine states and 12 markets in the United States. The real estate segment has 17 real estate projects representing more than 28,600 acres currently in the entitlement process, and 74 entitled, developed, and under development projects in seven states and 11 markets encompassing more than 16,100 acres, comprised of 28,200 residential lots and more than 2300 commercial acres. The mineral resources segment manages about 603,000 net acres of oil and gas mineral interests located principally in Texas, Louisiana, Alabama, and Georgia. Also included in the mineral resources segment is a 45% nonparticipating royalty interest in groundwater produced or withdrawn for commercial purposes from approximately 1.4 million acres in Texas, Louisiana, Georgia, and Alabama, and about 17,800 acres of groundwater leases in central Texas. The fiber resources segment includes the sale of wood fiber and management of the recreational leases. For additional information, visit www.forestargroup.com.