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  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • Prudential Timber Investments (Prudential Financial, Inc.)
  • Hancock Timber Resource Group (Hancock Natural Resource Group, Inc.)
  • Real Estate Managers
  • July 12, 2005
  • $660 Million

Seller Details

Prudential Timber Investments, Inc. (PruTimber) based in Boston, MA., is the timberland investment management unit of Prudential Financial, Inc. The assets currently managed by PruTimber include nearly 235,000 acres in the Southern U.S., more than 20,000 acres in Hawaii and nearly 150,000 acres in New Zealand.

Buyer Details

Hancock Timber Resource Group (HTRG) was founded in 1985 and is based in Boston, MA. They develop and manage globally diversified timberland portfolios for public and corporate pension plans, high net-worth individuals, and foundations and endowments. As of March 31, 2005, timberland assets under management totaled $2.5 billion. These assets are located in North America, Australia and New Zealand.

HTRG actively seeks and acquires large tracts of timberland in the major timber-growing regions of the world, and maintains regional asset management offices in Charlotte, North Carolina; Vancouver, Washington; and Victoria, Australia.

HTRG is a division of Hancock Natural Resource Group, Inc., a registered investment adviser and wholly owned subsidiary of Manulife Financial Corporation. Hancock Forest Management, Inc., is a subsidiary of Hancock Natural Resource Group, Inc.

Transaction Summary

With the acquisition, HTRG will assume management responsibility for PruTimber's approximately 450,000 acres of timberland worth approximately $660 million. The transaction will bring HTRG's total acreage and assets under management to approximately 2.5 million acres and $3.1 billion. The acquisition also will mark HTRG's entry into South America with the addition of nearly 45,000 acres of timberlands in Brazil.

HTRG expects the integration of the companies to be seamless, with most of PruTimber's employees joining HTRG. It is anticipated that John Lord, PruTimber's CEO, will provide consulting services to HTRG to facilitate the transition before pursuing other interests.

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