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$290M Re-Brands 463,000 Acres in Texas

SILSBEE, TX-Molpus Woodlands Group secures the deed with $257 million in cash and the balance in installments for an institutional client, which is eyeing a hold of 15 years or longer. For seller Louisiana-Pacific, the transaction completes a 935,000-acre disposition.

By Jennifer Brenner Andrade | Updated on October 20, 2003

SILSBEE, TX-A Jackson, MS-based timberland investment manager has followed through on a previously announced plan to spend $290 million for 463,000 acres of timberland in South Texas, the final transaction to a 935,000-acre disposition by Louisiana-Pacific Corp.

The land is located about 100 miles northeast of Houston near Beaumont. Molpus Woodlands Group bought the acreage on behalf of client, ETT LP, which is eyeing a 15-year hold or possibly longer.

Dick Molpus, president of the investment group, tells GlobeSt.com that there was significant competition to buy the tract because timberland has become a favored investment for large funds interested in diversifying assets. Molpus says the acreage contains Southern pine, which generally produces an investment return of 8% to 10%–a good return in today’s economic climate. The stand is a “blended tract” with less than 50% of the timber categorized as mature. As a result, the mix will provide a current cash flow yet ensure future profitability.

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