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Rayonier Sells 1940 Acres Near Jacksonville, Florida
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Jacksonville, Florida, USA, 06 December 2006 --(BUSINESS WIRE)-- Rayonier (NYSE:RYN) said today it has completed the sale of approximately 1940 acres of development property south of Jacksonville to LandMar, a premier Southeast U.S. land developer and home builder, for USD 27.5 million. The agreement includes a provision that provides Rayonier with the option to convert the transaction to a "participation" arrangement and share in proceeds as the property is developed.

Rayonier received and recorded USD 10 million in revenue at closing and, under the terms of the agreement, has the option to receive the remaining USD 17.5 million when the property is entitled, or, at that time, to convert the balance to a "participation" arrangement and share in the gross revenue from sales of home lots. The after-tax impact of the transaction in the fourth quarter is USD 5.9 million, or 8 cents per share.

"This transaction reflects our strategy to maximize per acre returns of our high-value real estate properties by partnering with companies that have extensive entitlement and development expertise," said Charles Margiotta, president of TerraPointe, Rayonier's real estate development subsidiary. "We are particularly pleased to be working with LandMar due to its reputation for creating high-quality, financially successful developments. Not only is Rayonier guaranteed USD 27.5 million (USD 14,160/acre), but we have the potential, through the 'participation' option, to receive considerably greater value as the property is developed."

The property is located in St. Johns County between the St. Johns River and Interstate 95 and is adjacent to the Julington Creek and South Hampton residential developments. LandMar has not announced plans or timing for development of the property.

About Rayonier

Rayonier is a leading international forest products company with three core businesses: Timber, Real Estate, and Performance Fibers. It owns, leases, or manages 2.7 million acres of timber and land in the United States, New Zealand, and Australia. The company's holdings include approximately 200,000 acres with residential and commercial development potential along the fast-growing Interstate 95 corridor between Savannah, Georgia, and Daytona Beach, Florida. Its Performance Fibers business is the world's leading producer of high-value specialty cellulose fibers. Approximately 40% of the company's sales are outside the United States to customers in more than 50 countries.

About LandMar

LandMar has been a leading community developer since 1987, creating some of Florida's best communities. Today, LandMar features a wide array of residential, commercial, and mixed-use offerings throughout Florida and Georgia. LandMar communities offer homesites, homes, and condominiums in a wide range of prices and feature a wealth of amenities including signature golf courses by legendary players Jack Nicklaus, Arnold Palmer, Gary Player, Mark McCumber, Pete Dye, Davis Love III, Ben Crenshaw and Bill Coore. The company's vision is inspired by three primary building blocks: Creating unparalleled master planned communities and condominiums, offering premier club and amenity management with its affiliated company Hampton Golf, and supporting the efforts of its charitable organization, The Monique Burr Foundation for Children. For more information on LandMar, visit www.landmargroup.com.


 

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