February 9, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Once again the Southeast U.S. is proving to be a hotbed for timberland deals. 

Private investment management services firm Domain Capital Group has revealed its acquisition of 22,000 acres of timberland throughout the U.S. Southeast via six separate transactions spanning October 2022 to January 2023.

These deals add to another acquisition announced in March 2022, through which Domain Capital Group’s subsidiary, Domain Timber Advisors, acquired Whitewater Creek – an asset encompassing 1,672 acres of timberland in the western region of the state of Georgia. 

Based in Atlanta, Georgia, Domain Capital Group manages $8.5 billion in total AUM (as of September 30, 2022) spread across its two registered subsidiaries: Domain Capital Advisors and Domain Timber Advisors. These assets are comprised of approximately $7.3 billion in real estate, debt, alternative, and other assets constituting Regulatory Assets Under Management (RAUM) and approximately $1.2 billion in non-RAUM assets including real properties and additional loans services. 

Domain explained that this latest string of asset acquisitions located in Arkansas, Texas, Mississippi, Alabama, Georgia, and Virginia present a geographically diverse footprint offering exposure to several different timber and land markets with higher-and-better use potential.

“We believe these acquisitions demonstrate Domain’s ability to source quality assets in a competitive market environment and complete transactions expediently,” said Peter Walker, vice president of investments and timberland assets, Domain Timber Advisors. 

“Our plan to target value opportunities in lower-to-middle tier land markets has continued to produce consistent results. We look forward to being good stewards of these properties and managing them to high standards that preserve and enhance the environment.”

A regional focus on the U.S. Southeast for timberland deals has been very evident lately – in fact, this week. 

It was just on February 6 when GAI News shared that Campbell Global, the wholly owned timber investment manager of J.P. Morgan Global Alternatives, advised investors and led the acquisition of more than 250,000 acres of commercial timberland across three properties in the Southeastern region of the U.S., through a deal valued at more than $500 million.

Known as the U.S. “wood basket” the region is responsible for more than 55 percent of the country’s timber harvest by volume, and produces more wood products than any country on Earth except the U.S.

Some additional examples include:

In November 2021, 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.

In February 2022, the Ontario Teachers’ Pension Plan Board (OTPPB) completed a redemption transaction through Tamarack Timberlands LLC, an investment vehicle owned by the pension fund, with mortgage holder Resource Management Service (RMS) assuming direct ownership and full governance of approximately 870,000 acres of loblolly pine forest spread across the U.S. Southeast.

In March 2022, Atlanta-based Domain Capital Group announced that its subsidiary, Domain Timber Advisors, had acquired 1,672 acres of timberland, called Whitewater Creek, in the western region of the state of Georgia. 

And in November 2022, it was announced that Rayonier Inc. entered into two agreements to acquire 172,400 acres of commercial timberland in Georgia, Alabama, Texas, and Louisiana from Manulife Investment Management for $474 million.

For Domain, this series of acquisitions bring its total timberland acreage under the company’s management to more than 264,000 acres. However, this manager is not done, stating that intentions are to continue to research opportunities for additional strategic acquisitions in the Southeast that will serve to meet the demand the area is seeing for lumber and wood products. 

~ Lynda Kiernan-Stone is editor in chief 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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