November 18, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

Global investment group Caisse de dépôt et placement du Québec (CDPQ) and The Westervelt Company announced the creation of a new strategic partnership and the acquisition of 76,000 acres of high-quality pine timberland in Georgia from family-owned Superior Pine Products.

Founded by Herbert Westervelt in 1884 and headquartered in Tuscaloosa, Alabama, The Westervelt Company is a privately held company currently under the fourth generation of family leadership. With more than a half of a million acres of land under management, the company is recognized for excellent sustainable forest management, responsibly sourced forest products and services, natural resource stewardship, and ecosystem conservation.

“This was a rare opportunity to purchase a special timberland asset in southeast Georgia. The land matches Westervelt’s strategic growth and diversification objectives, and its age class distribution balances growth and sustainability goals,” said Brian Luona, president and CEO, Westervelt.

The Westervelt Company stated that it was its legacy of innovation that was a key driver in its interest in partnering with CDPQ, a global investment group managing funds for public retirement and insurance plans, working with partners to build enterprises that are engines of not only performance, but progress.

“This is more than a land deal for us. Superior Pine shares Westervelt’s commitments to sustainability, responsible land management and stewardship,” said Cade Warner, chief sustainability officer, Westervelt.

“This land will be managed into the future in a manner that honors the Superior legacy. CDPQ shares the same organizational values and is respected for their impactful and innovative investment approach that is aligned with our long-term sustainable land management objectives.”

This property, newly acquired by the partners, has been owned and managed for nearly a century by Superior Pine Products, another family-owned company headquartered in Georgia, that noted that this deal was reflective of its desire to free-up the company to further diversify its holdings and operations.

Scott Griffin, president and CEO, Superior Pine Products Company, explained,

“As we move forward with our strategic plan to geographically diversify our timberland holdings, this transaction will enable our Company to grow in other market areas while retaining ownership in our core area of operations. Westervelt and CDPQ align with our Company values and commitment to sustainability, so we are excited about this opportunity for all entities and look forward to future possibilities for growth.”

Timberland is rapidly gaining credibility as a prime alternative investment for gaining environmental, social, and governance (ESG) benefits for portfolios. As such, demand for these kinds of sustainable alternatives continues to strengthen among the pension and institutional investor space as part of their broader commitments to climate change mitigation and sustainability.

(A summary of major forestry and timberland deals that have occurred in 2021 can be found here.)

A major factor driving the increased investment activity in the asset class is the UN’s Principles for Responsible Investment forecast that corporate demand for carbon removal and offsetting could represent $800 billion annually for investors by mid-century, along with initiatives such as the universal consideration of the SFI standard, which acknowledges the impact on the use of sustainable forestry practices on the capacity of working forests to sequester carbon and other greenhouse gas emissions.

“This transaction illustrates what our Sustainable Land Management initiative is all about: investing in land with partners who truly share our values and culture of investing constructively,” said Emmanuel Jaclot, executive vice-president and head of Infrastructure at CDPQ.

 “That’s why we are delighted to join forces with Westervelt, a family-owned business focused on environmental stewardship and innovation, for this first investment in the United States as part of this partnership,” continued Jaclot. “Working forests are unique assets and we believe they will become of increasing importance in the fight against climate change and the transition to a greener economy.”

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.