International Paper Sells $200 Million Worth of Properties
International Paper 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 .
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 percent of the Rock Creek Capital'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."
The transaction is expected to close in the third quarter of 2010.
For more information, visit www.internationalpaper.com.