THE OFFERING MANAGEMENT OVERVIEW

Transcription

1 LOGAN TIMBERLANDS

2 LOGAN TIMBERLANDS

3 THE OFFERING AFM Land Sales (AFMLS) invites interested parties to submit offers to purchase an investment grade, Appalachian hardwood property totaling 88,333± acres known as the Logan Timberlands offering. The property is located in four counties in western West Virginia, being offered in its entirety through a sealed bid, lump sum, single phase event. MANAGEMENT OVERVIEW Logan Timberlands has a long history of quality timberland management influenced by investment parameters designed for maximizing timber production, while maintaining the highest and best use of the land. The property has been managed under West Virginia s Best Management Practices. As a result of this management approach, the properties are currently third-party certified. The seller has continually used silvicultural and harvesting techniques to preserve or enhance the site quality of the land while promoting responsible forest propagation. The information resulting from these management activities is contained in an integrated timber inventory system and is complemented with the use of a Geographic Information System. The data from both of these systems will be made available to prospective purchasers.

4 Pine/Hemlock Pine/Hemlock American Beech American Beech LOCATION & REGIONAL OVERVIEW Logan Timberlands is located in Lincoln, Logan, Mingo and Wayne Counties, West Virginia. This large acreage is an excellent investment opportunity situated in an area with numerous forest products markets and growing demand for recreational properties. The market area has a well-developed road system. U.S. Highways 119 and 52 are the primary transportation corridors through the area. State Highways 10, 37, 44, 65, and 152 provide good access within the market area. County graded roads provide additional market area access. Internal access is via woods roads of mostly average to good quality. Many of the primary access points are gated and locked. The hardwood sawtimber markets have historically defined the region, with pulp markets allowing for the production and marketing of a wide variety of forest products. The forest products industry is the primary economic driver in the region and various types of mills are operated in the area. Several of the more important solid wood producers/companies in the local region include Gilbert Lumber Co. in Gilbert, WV; Hamer Lumber Co. in Madison, WV; Cabin Creek Lumber Co. in Cabin Creek, WV; Tolsia Lumber Co. in Fort Gay, WV; Wayne Lumber and Mulch in Wayne, WV; and Sugar Tree Lumber Co. in Griffithsville, WV. The pulpwood consumers in the region include Alloy in Alloy, WV; Weyerhaeuser concentration yard at Little Hewitt Creek Road in Boone Co., WV; and MeadWestvaco concentration yard in Sophia, WV. There are no biomass facilities in the region. TIMBER AT A GLANCE The acreage is dominated by a diverse species mix of Appalachian hardwood stands growing on productive sites positioned for strong biological growth, product shifts and price appreciation. Most importantly, the property contains an exceptionally high percentage of merchantable acreage, with some 75% of the property in merchantable hardwood and 12% in premerchantable hardwood. The balance of the acreage is in roads, utilities, and open areas. The timberlands were re-inventoried in November The predominant tree species include Poplar, Red Oak, Chestnut Oak, White Oak, Hickory, and Maple. In total, these species consist of over 86% of the total sawtimber volume on the property. The property contains a standing sawtimber inventory greater than 10 inches DBH of 397,092,503 BF of mixed hardwood sawtimber, 8,066,229 BF of Eastern Hemlock and 2,161,867 BF of Pine. Standing volume for pulpwood greater than 5.6 inches DBH includes 1,160,514 tons of hardwood and 10,600 tons of pine (pine, hemlock). Although no timber sales are scheduled for 2015, there are some active timber sales on the property. Details related to these sales can be found in the data room. There are no wood supply agreements currently encumbering the property. BF (Doyle) 70,000,000 60,000,000 50,000,000 BF (Doyle) 40,000,000 30,000,000 Logan BF by DBH 20,000,000 10,000, DBH DBH BF (Doyle) Poplar 120,000, ,000,000 BF (Doyle) 80,000,000 60,000,000 40,000,000 20,000, Poplar Red Oak Logan BF by Species Red Oak Chestnut Oak Chestnut Oak White Oak White Oak Hickory Hickory Maple Maple Basswood SPECIES Basswood Mixed Hardwoods Mixed Hardwoods Ash Ash Birch Birch

5 LOGAN TIMBERLANDS LOCATION MAP

6 MINERALS OWNERSHIP As is typical in this region, the minerals are not owned by the Seller. More information related to mineral activity and surface information is found in the data room. RECREATION The property has three wildlife management areas within its boundaries that are managed by the West Virginia Department of Natural Resources and are open to the public for hunting. These areas are the Big Ugly Wildlife Management Area in Lincoln County, Elk Creek Wildlife Management Area in Logan and Mingo Counties, and the Laurel Lake Wildlife Management Area in Mingo County. The timberlands are located in some of the best whitetail deer bow hunting areas in the state. The counties of Logan and Mingo are bow hunting only for whitetail deer, which has allowed many of these whitetails to reach mature trophy status. The opportunity to harvest a trophy whitetail attracts bow hunters from all over the state as well as the east coast. The Hatfield McCoy ATV/Off-road Trail System goes through a portion of the Logan Timberlands between the town of Williamson and the community of Taylorville in Mingo County off of US Route 52. This trail is accessed from the Buffalo Mountain Trailhead.

7 THE OFFERING PROCESS Data Room AFMLS has set up an electronic data room containing property information for interested parties to use as they evaluate the offering. All prospective bidders who execute a Confidentiality Agreement (CA) will be issued a user name and password to gain access to the data room. These permissions will be issued via once the data room goes live. The data room will be accessible to prospective bidders on March 9, Inventory Information An auditable timber inventory was completed in November, The inventory results and individual plot data will be made available to prospective bidders in the data room. Property Access Information Most of the property is accessible by state or county roads. General access information for all of the properties is detailed in the data room. An executed Access Agreement (AA) is required before entry to the property will be allowed. Please contact AFMLS for access information. Property Tours Bidders are encouraged to contact an AFMLS representative to tour the properties. The tour offers an overview of management history and silviculture practices. Prospective bidders may, however, inspect the property on their own upon notification to AFMLS. Fully executed CA and AA are both required before entry to the property will be allowed. Upon receipt of the CA and AA, access information will be issued by the respective AFMLS contacts. Those entering the property are to do so at their own risk and no liability is assumed by the seller or AFMLS. Offering Process All bids are due to the respective AFMLS contacts. Bids can be submitted via , through overnight or regular mail on or before the bid due date. The sale timeline and process is generally described as follows: March 9, 2015 Data room available for access to prospective bidders. March 9, to April 20, 2015 Buyers may inspect the property or request property tours. April 21, 2015 Bids for the entire property, based on the information provided in the data room, are due. June 24, 2015 Projected closing. GENERAL INQUIRES: Confidentiality Agreements should be returned to Tom Margo, VP/Director of Investiments, via to [email protected] or FAX (704) For more information related to the offering please contact: Jake Almond, AFM Land Sales, LLC Broker-In-Charge WV Principal Broker TN and KY 103 Barrie Lane Kingston, Tennessee Office: (865) Mobile: (865) [email protected] Scott Bosley, AFM Land Sales, LLC Licensed West Virginia Real Estate Salesperson 464 Prosperity Road Prosperity, West Virginia Office: (304) Mobile: (304) [email protected] Tom Margo, AFM Land Sales, LLC American Forest Management, Inc. VP/Director of Investment Services 2401 Whitehall Park Drive, Suite 1100 Charlotte, NC Office: (704) x 314 Mobile: (478) [email protected] AFMLS is the exclusive agent for this transaction. Neither seller nor its representatives warrant the completeness or accuracy of the information. Each prospective purchaser should make its own determination as to timber volumes, timber quality, logging feasibility, acreage, access, and federal and state environmental and regulatory constraints relating to the use of the property and the harvest of timber therefrom. Seller, its brokers, managers, agents and employees make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein or as to the property, its condition, boundaries, timber volumes, acreage, wetlands, or fitness for a particular purpose. The successful purchaser will accept the property in its present condition, AS IS, WHERE IS, with all faults, at closing, including, without limitation, the lack of legal or historical access to some of the acres as described in the supplemental information as provided in the data room and available to each prospective purchaser.

8 2401 Whitehall Park Drive, Suite 1100 Charlotte, North Carolina