GardenBanter.co.uk - View Single Post

07-08-2003, 07:04 PM

(Robert Cohen) writes:
are these reasons enough for their selling their land:

three thousand dollars per acre of land in the northern half of the state of
georgia approximately within 50-100 miles (or however many miles) of the
metropolitan atlanta area is seemingly financially better for the owners than
the slow demand for wood

It could be, but there could be other reasons. The most likely reason is
that urban encroachment is making forest management difficult, while
presenting a great opportunity for profit from land sale.

in order to partially payoff their debt from their mergers and acquisitions

Of fund further acquisitions. Corporations don't have any emotional
attachment to a particular parcel.

i suppose they don't generally sell their lands until the ready timber is
harvested (?), or is the demand so low that it's not as important (?)

Probably. You can bet that 90% of the land is in plantations in various
stages of growth.

and is now the time to buy land when so much is being offered?

If you have the money, I would certainly talk to them. There is usually
room to do some wheeling and dealing in an 8 or 9 figure deal. I think
it was when Louisiana Pacific closed out their Oregon holdings, Roseburg
Forest Products bought about 300,000 acres for $245 million. (Going from
a memory of a newspaper article from years ago here, so just take this as
an illustration).

and where would you buy if cheap acres of land were available?

Wherever the land was. It's not like you can move it. An hour north of
Atlanta doesn't sound bad for a location, though. I have a nephew who
lives in that area. Nice country.

--
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