International Paper to Sell 163,000 Acres of Real Estate Properties
July 22, 2010 - International Paper today said that it reached agreement to sell 163,000 acres of properties located in the southeastern United States for approximately $200 million in a transaction with an affiliate of Rock Creek Capital (the "Partnership").
IP said a minimum of $160 million will be received at closing, with the balance, plus interest, to be received no later than three years from closing. In addition, IP will receive 20% of the Partnership’s net profits after it achieves certain financial returns.
“This sale will substantially complete the monetization of our forest land and realty holdings,” said Dave Liebetreu, International Paper’s vice president, global sourcing and forest resources. “The transaction represents good value in this economic environment and allows us to participate in the upside potential as the real estate market recovers.”
IP expects the deal to close in the third quarter of 2010.
SOURCE: International Paper