Resource Management Service’s (RMS) evergreen US forestland fund has made its debut investment in the Pacific northwest, acquiring 36,000 acres of timberland in coastal Washington for $145m (€124.6m) via an asset swap with land resources real estate investment trust Rayonier.
The deal involves the $1.17bn open-ended RMS Evergreen US Forestland Fund transferred approximately 57,000 acres of timberland in Texas and Alabama valued at $146m to Rayonier in exchange for the Washington assets, with a nominal $1m net cash adjustment paid to balance the transaction.
The deal gives RMS an immediate 12.4% allocation to the Pacific northwest as it targets an ultimate regional weight of 20-30% through further acquisitions.
Alex Hinson, president and CEO of RMS, said: “This transaction positions the Evergreen Fund’s portfolio for the future. Expanding the fund into the Pacific northwest increases its geographic diversification and strengthens its access to domestic markets in the Lower Columbia River Valley and export markets through the port of Longview. Together, these advantages enhance the fund’s ability to create sustainable value for its investors.”
Mark McHugh, president and CEO, Rayonier, said: “These transactions reflect our continued focus on portfolio optimisation, as we look to concentrate our capital in markets with strong cashflow attributes and favourable long-term growth prospects.
“We were pleased to collaborate with RMS on this negotiated, off-market deal that aligned well with the strategic priorities of each organisation.”
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