Tag Archives: timber
US Real-Estate Investment Trust Weyerhaeuser To Buy Longview Timber For $2.65 bn News –
17 June 2013 US real-estate investment trust Weyerhaeuser Co yesterday agreed to buy Longview Timber LLC from Brookfield Asset Management Inc, for $2.65 billion including debt. The deal, which will be the third-largest forestry acquisition in North America, will see Weyerhaeuser acquire nearly 645,000 acres of timberland in Washington and Oregon from Brookfield and expand its Pacific Northwest holdings by 33 per cent to 2.6 million acres. It will also increase the total amount of US timberlands it owns or controls to approximately 6.6 million acres. The assets are held through a global timber fund that includes Brookfield Infrastructure Partners and institutional investors. The Washington-based company expects to generate annual synergies of approximately $20 million within two years of closing. Weyerhaeuser intends to raise approximately $2.45 billion in a combination of debt and equity. The company said that it has a committed senior unsecured bridge facility from Morgan Stanley. ”We believe our company is uniquely positioned to maximise the value of these timberlands,” said Dan Fulton, Weyerhaeuser president and chief executive officer. ”The acquired timberlands are highly complementary to our existing acreage in Washington and Oregon, where we have more than 100 years of experience managing Douglas fir. ”By increasing our high-value timber holdings west of the Cascade mountain range, we will leverage our infrastructure as well as our expertise in silviculture, logistics and marketing, giving us a distinct competitive advantage both domestically and with export markets,” he added. Founded in 1900, New York Stock Exchange-listed Weyerhaeuser is one of the world’s largest private owners of timberlands. It owns or controls more than 6 million acres of timberlands, primarily in the US, and manages another 14 million acres under long-term licenses in Canada. Weyerhaeuser is also one of the largest manufacturers of wood and cellulose fibers products, and develops real estate, primarily as a builder of single-family homes. In 2012, it generated sales of $7.1 billion and employed approximately 13,200 people. – See more at: http://www.domain-b….h.mAsjFBmT.dpuf Continue reading
High Demand For Timber Is A Boom Waiting To Happen
Despite our being in the depths of a global economic recession , timber has never been in greater demand for use both in construction and as an energy source. Since our ancestors first learnt to use fire, make spears and build rudimentary dwellings, wood has been the principal material used to improve living standards. Timber has always played an essential role in the development of civilisation for it is a unique material with countless applications. The recent development of more sophisticated timber products has been rapid and it seems only a few years since I was offered sawdust for free to use as cattle and horse bedding. But now, every speck is required for the manufacture of wood pellets for fuel. While some problems have occurred with small home heating pellet units, the savings compared with purchasing oil or electricity are huge for the larger industrial units heating swimming pools, hospitals, hotels and other high-energy applications which all require fuel throughout the year. Prices for wood are going through the roof and the price of hardwood from Western Canada has risen by approximately 60pc since the end of 2011. The use of wood chip and logs for heating has also grown dramatically. The big question now is where will all this timber come from? Just one power station could get through an entire year’s supply from the private woodland sector if burning timber alone. Laminated beams and arches can now span greater distances than traditional wooden beams without the use of supporting columns. These beams have been used in the construction of bridges and even sports stadia and, being lighter than steel or concrete, are easier to transport and erect. Mixed species woodland has numerous advantages including increased protection against disease. The Pro Silva organisation hosted a field trip to Rahin Woods near Kinnegad recently where we saw mixed species woodland with some fine oak planted in the 1930s growing alongside beech and some assorted species of conifers. Leading the event was Phil Morgan, president of Pro Silva Europe. Continuous cover woodland management has many attractions for owners of farm forests and is a system I hope to apply to my own woods for its benefits have already been proven in many countries. Forestry in Ireland is still in its infancy and we have a lot to learn from our European counterparts. Continue reading
