Properties
The Corrigan property
At time of acquisition the property consisted of approximately 22,000 acres located in East Texas. The property is located 95 miles NE of Houston and 200 miles SW of Dallas. It consists predominately of loblolly pine plantations with a small component of natural pine, natural pine/hardwood and natural hardwood stands. Corrigan received American Tree Farm Certifications in 2010.
Since the acquisition of this property in 2007 Corrigan has provided income from pulpwood harvests, hunting leases, easements, and small tract sales. As part of a strategic initiative to rebalance the Cambium portfolio out of timberland markets that are reliant on US housing starts and into higher risk adjusted return geographies, Cambium began a process to sell a portion of the US assets.
In November of 2010 Cambium sold 14,273 acres of the Corrigan asset. Net of sales commissions and other transaction costs proceeds were approximately $18.1 million. As of June 1, 2011 Cambium announced that they have entered into an agreement to sell the remaining 7,270 acres of this property. Net of estimated transaction costs and taxes proceeds will be approximately $10.9 million. Proceeds from the two land sales equate to 108% of the original purchase price. The proceeds were used to reinvest in Cambium's portfolio and to pay down a portion of debt.
At time of acquisition the property consisted of approximately 22,000 acres located in East Texas. The property is located 95 miles NE of Houston and 200 miles SW of Dallas. It consists predominately of loblolly pine plantations with a small component of natural pine, natural pine/hardwood and natural hardwood stands. Corrigan received American Tree Farm Certifications in 2010.
Since the acquisition of this property in 2007 Corrigan has provided income from pulpwood harvests, hunting leases, easements, and small tract sales. As part of a strategic initiative to rebalance the Cambium portfolio out of timberland markets that are reliant on US housing starts and into higher risk adjusted return geographies, Cambium began a process to sell a portion of the US assets.
In November of 2010 Cambium sold 14,273 acres of the Corrigan asset. Net of sales commissions and other transaction costs proceeds were approximately $18.1 million. As of June 1, 2011 Cambium announced that they have entered into an agreement to sell the remaining 7,270 acres of this property. Net of estimated transaction costs and taxes proceeds will be approximately $10.9 million. Proceeds from the two land sales equate to 108% of the original purchase price. The proceeds were used to reinvest in Cambium's portfolio and to pay down a portion of debt.
