ATLANTA (June 19, 2009) – Sutherland Asbill & Brennan LLP represented Forestar Group Inc. in its sale of 75,000 acres of Georgia and Alabama timber and timberland for approximately $120 million to Hancock Timber Resource Group, which acquired the property on behalf of investors. The transaction closed June 16, 2009, and represents a significant first step in Forestar’s execution of its strategic initiatives, which were announced earlier this year.
The Sutherland team was led by Atlanta Partners Daniel R. McKeithen, Thomas C. Herman, Victor P. Haley and Haynes R. Roberts. All are members of the firm’s Timber and Forest Products Group, which represents industry participants in the full array of acquisitions, dispositions, financings, fund formation, tax planning and operational activities.
Goldman, Sachs & Co. served as financial adviser to Forestar in connection with the transaction.
ABOUT FORESTAR GROUP
Forestar Group Inc. operates in three business segments: real estate, mineral resources and fiber resources. The real estate segment owns directly or through ventures over 288,000 acres of real estate located in nine states and twelve markets in the U.S. The real estate segment has 24 real estate projects representing 33,600 acres currently in the entitlement process, and 75 entitled, developed and under development projects in seven states and eleven markets encompassing almost 17,000 acres, comprised of almost 30,000 residential lots and over 2,300 commercial acres. The mineral resources segment manages about 622,000 net acres of oil and gas mineral interests. The fiber resources segment sells wood fiber from its land primarily located in Georgia, and leases land for recreational uses. The company also has a 45% nonparticipating royalty interest in groundwater produced or withdrawn for commercial purposes from approximately 1.38 million acres in Texas, Louisiana, Georgia and Alabama. Forestar’s address on the World Wide Web is forestargroup.com.
SUTHERLAND ASBILL & BRENNAN LLP
Sutherland Asbill & Brennan LLP is a law firm with global reach known for solving challenging business problems and resolving sophisticated legal issues for many of the world’s largest companies. Founded in 1924, the firm handles matters throughout the United States and worldwide. Seven major practice areas—corporate, energy and environmental, financial services, intellectual property, litigation, real estate, and tax—provide the framework for an extensive range of focus areas, allowing Sutherland attorneys to serve a diverse client base that ranges from small and medium-sized start-up businesses to a significant number of Fortune 100 companies.
Target & Acquirer name: Forestar Group Inc.
Date Deal Announced: May 4, 2009
Date of Completion: June 16, 2009
Deal status: Closed
Which party firm advised: Forestar Group Inc.
Advisory role: Transaction Counsel
Deal Description: Sale of 75,000 acres of timber and timberlands to Hancock Timber Resource Group, a cash transaction of approximately $120 million.
Value: $120 million
Bidder: Hancock Timber Resource Group
Lawyers for Target: Sutherland Asbill & Brennan LLP