March 13, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Nuveen Natural Capital, the real asset-focused vehicle of the TIAA asset management arm, has divested 11,332 acres of forestland located in southeastern Oklahoma to national non-profit The Conservation Fund through its Working Forest Fund. 

Capital from The Conservation Fund’s green bonds – the first of their kind in the U.S. – are funding the deal along with bridge financing provided by the Richard King Mellon Foundation. 

“Nuveen Natural Capital excels at combining active management and nature-based solutions to create transactions that are accretive for our clients,”  said Chris Lipton, head of timberland investments, Nuveen Natural Capital.

“These types of transactions are good for nature, climate, and people, and it was a pleasure working with The Conservation Fund on this opportunity.”

The Conservation Fund noted that it had been seeing a regional trend of forestland being subdivided and converted into non-forest uses, often driven by the influx of out-of-state second home buyers. In response, the Fund prioritized the purchase of this land through its Working Forest Fund which has a mission to mitigate climate change, strengthen rural economies, and to protect natural ecosystems through the permanent conservation of at-risk working forests.

Through this purchase, The Conservation Fund gains the time and ability to now permanently conserve the land in partnership with the Oklahoma Department of Agriculture, Food, and Forestry as the state’s first state forest. 

“It is gratifying to partner with the Oklahoma Department of Agriculture, Food, and Forestry to preserve this unique property,” said Ginny Moore, Oklahoma and Kansas representative of The Conservation Fund. “Establishing Oklahoma’s first state forest provides multiple benefits: supporting the region’s rural economy, enhancing recreational opportunities, and providing space for outdoor enthusiasts who just want to enjoy the beauty of nature.”

During its interim ownership, The Conservation Fund will manage the asset as a sustainable working forest and will work with the Oklahoma Department of Agriculture, Food, and Forestry to secure private and federal funding – including support from the U.S. Department of Agriculture Forest Service’s Forest Legacy Program, funded through the Land and Water Conservation Fund – for its permanent conservation.

Once ownership is conveyed to the state, a plan for recreational access will be created that allows the state to manage the land for its conservation resources and as a tree improvement center.

Located east of the Ouachita National Forest, the remoteness of the Round Mountain Forest makes it ideal for use as a demonstration forest for invasive species management and as a training ground for prescribed fire management programs. But the added benefit of being within driving distance of Oklahoma City means it also will provide potential opportunities for new recreational access and outdoor economic activities. 

“Oklahoma’s forests support an industry that annually contributes $5.1 billion to our economy, employs a workforce of over 19,000 people, and provides the forest products we need in our daily lives,” said Mark Goeller, state forester and director of Oklahoma Forestry Services. 

“Equally as important is our forest’s contribution to Oklahoma’s environmental health. Oklahoma’s forests have many benefits including clean water, clean air, and carbon sequestration. Acquisition of this land is a great opportunity to help sustain Oklahoma’s economic and environmental well-being.”

Craig Marquardt, forest management chief and assistant director for Oklahoma Forestry Services, noted, “This is truly a unique opportunity for our state. To be in a position to acquire these significant parcels of land and to be able to keep that land in working forests is one that does not come around often.”

Marquardt continued, “These forested lands will provide timber, wildlife habitat and recreational opportunities for Oklahomans for generations to come. We are grateful to our partners at The Conservation Fund and the U.S. Forest Service for their expertise, insight and patience as we make our way through the acquisition process.”

~ 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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