WILDLIGHT, Fla. (News release) -- Rayonier Inc. has sold the rights to manage two timber funds (Fund III and Fund IV) that were previously managed by its Olympic Resource Management (ORM) subsidiary, as well as its co-investment stake in both funds, to BTG Pactual's Timberland Investment Group (TIG) for an aggregate purchase price prior to closing costs of $35.9 million. The transaction will be reflected in third quarter financial results.
Collectively, the funds that were sold comprise approximately 110,000 acres of diverse, SFI-certified timberland in the U.S. Pacific Northwest. Rayonier's ownership stake in the two funds on a "look-through" basis equated to approximately 11,000 acres.
"We are pleased to transition management of these two timber funds to a well-qualified timberland investment manager," said David Nunes, President and CEO. "As previously communicated, the private equity timber funds business that we obtained last year through our acquisition of Pope Resources was not a long-term strategic fit for Rayonier. We believe this transaction reflects a favorable outcome for our shareholders, as it allows us to simplify our operations and allocate capital to other strategic priorities."
Following this transaction, Rayonier continues to own a 20% co-investment stake in one timber fund (Fund II) comprising 31,000 acres of timberland in the Pacific Northwest. Rayonier has commenced a process to liquidate the Fund II assets. Fund II will continue to be managed by ORM until completion of the planned sale.