Jackson, Mississippi-based timberland investment manager Molpus Woodlands Group, with over a century of history behind it, has acquired thousands of acres of timberland across Alabama, Louisiana and Mississippi on behalf of APG Asset Management in a deal valued at $462 million, according to the asset manager, describing it as “one of the largest timberland transactions in the US in recent years.” This move expands Molpus’ footprint in the U.S. South while securing a controlling stake for APG, acting on behalf of Dutch pension giant ABP, in a sprawling 70,000-hectare (173,000-acre) sustainable forestry operation.
The deal marks the inaugural investment by APG under Dutch pension ABP’s Private Natural Capital Strategy. Nestled near a diverse base of pulpwood, plywood and dimensional-lumber mills, these working forests are poised to generate income from sustainable harvests amid rising demand for wood products.
Molpus has spotlighted an array of established and nascent value-add prospects across the newly acquired lands, from solar energy developments and carbon capture initiatives to recreational leasing and pine straw harvesting. By prioritizing eco-conscious stewardship, the asset is projected to sequester nearly 2 million tons of standing forest carbon over the next decade and a half, a critical step in the fight against climate change. Championing rigorous practices, the firm plans to integrate these assets into its Sustainable Forestry Initiative (SFI) certification regime, a framework that prioritizes biodiversity preservation, controlled harvest intensities, water resources, wildlife corridors and forest renewal.
To bring its vision to life, Molpus’ team will oversee day-to-day operations of the timberland assets, planning sustainable harvests, reforesting and nurturing young stands while protecting wildlife habitat and water resources with improved conservation practices.
Molpus President CEO Terrell Winstead stated, “As a long-time manager in Alabama, Louisiana and Mississippi, we are excited to add these forests to regions where we already have a strong presence. It is our view that these properties provide our clients with positive exposure to areas with established histories of sustainable timber production as well as numerous impact and value add opportunities.”
Chris Martin, Portfolio Manager, Americas Private Natural Capital at APG Asset Management, said, “This investment demonstrates how we can deliver on our client’s ambition for real biodiversity and climate impact at scale without compromising on returns. We’re proud to partner with Molpus on a structure that puts impact and performance on equal footing.”
The U.S. South has remained a focal region for institutional timberland allocations due to deep mill infrastructure, abundant fiber supply and attainable permitting. For context, the region has seen steady transaction activity in recent years; for example, Superior Pine Products acquired more than 58,000 acres in Arkansas and Louisiana, dubbed the Castle Timberland property, from Molpus in 2022, citing the same combination of high-quality timber, market access and growing wood-products demand.
Molpus expects generate both traditional forestry income and optionality from natural-capital and infrastructure use cases. That mix of core timber cash flow with diversified upside has increasingly appealed to investors seeking exposure to real assets with inflation-hedging characteristics and the potential for incremental returns from carbon or renewable-energy projects, especially in fiber-rich Southern markets. With a legacy stretching back over 100 years, Molpus manages more than 1.8 million acres across over a dozen U.S. states.
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