Mason County News
Green Diamond to Manage Timber Portfolio
Green Diamond Resource Company is creating a subsidiary and will become manager of a timber portfolio after a 121,000-acre timberland transaction. Thursday, Twin Creeks Timber LLC, a joint venture with Silver Creek Capital Management, announced it will purchase 100,000 acres located in the Southern U.S. from Weyerhaeuser Company and receive a contribution of 21,000 acres located in the Pacific Northwest from Green Diamond. Through the addition of these timber assets, Twin Creeks will increase its Southern portfolio to 360,000 acres and add the Pacific Northwest to its portfolio. The timberland transactions are expected to close by year end.
In conjunction with these timberland transactions, Twin Creeks also announced that it has repurchased Weyerhaeuser’s equity interest in the joint venture and will replace Weyerhaeuser as the joint venture’s timberland manager with a new manager effective January 1, 2018. Green Diamond will become a new equity partner in Twin Creeks and Green Diamond Management Company, a wholly-owned subsidiary of Green Diamond, will become manager of Twin Creeks’ timber assets portfolio.
“We established Twin Creeks with the goal of taking a differentiated approach to institutional timber ownership by pairing sophisticated institutions directly with an operating partner. Green Diamond is well-recognized as a leading owner and manager in the forest products industry for over 125 years, and we are pleased to be partnering with them to build the Twin Creeks business for decades to come,” said Bob Ratliffe, President of Silver Creek and the Co-Portfolio Manager of Twin Creeks.”
Douglas Reed, President of Green Diamond, added, “As a family-owned business with roots dating to 1890, Green Diamond is committed to long-term, high quality stewardship of timberland properties. We are delighted to invest in and manage for Twin Creeks as their approach is aligned with our own.”
Ratliffe concluded: “We are thrilled to have this series of transactions completed as it sets Twin Creeks on a path for success and further growth with a well-aligned set of partners. We believe we have found an attractive combination and alignment with Green Diamond and a very supportive group of existing institutional partners, including a final one who has committed $250 million. We are well prepared to grow and expand our portfolio of timber assets well into the future.”
Green Diamond’s Patti Case told MasonWebTV Powered by HCC, this is a new investment model and an exciting new opportunity for Green Diamond.
“Twin Creeks goes out and gets investors,” Case said in a short phone interview. “And we manage the timberland because we’re the timberland experts. They are the investor experts.”
The Green Diamond timberland contribution is mostly in Lewis County and makes them investors.
“Part of the difference between ourselves – this model – and other timber investment management organizations,” Case explained, “is that we have skin in the game.”
About Silver Creek Capital Management
Silver Creek is an alternative investment boutique with a focus on private credit, hedge fund and real asset strategies. The Firm specializes in developing highly structured, unique investment solutions for a global client base which includes public and corporate retirement plans, insurance companies, foundations, endowments and family offices that seek to access these asset classes. With a history beginning in 1994 and based in Seattle, Washington, Silver Creek currently has $6.3 billion of assets under management and committed capital. For more information about Silver Creek, its team and investment approach visit www.silvercreekcapital.com.
Twin Creeks was established in 2015 as a partnership with Plum Creek Timber which subsequently merged with Weyerhaeuser. The venture’s total capitalization will be in excess of $1B as a result of the aforementioned transactions. The venture currently owns timberland in South Carolina, Georgia, Alabama, Arkansas, Mississippi and will own timberland in the Pacific Northwest beginning in 2018. Twin Creeks is currently closed to new investment.
About Green Diamond Resource Company
Green Diamond Resource Company is a privately held forest products company that owns and manages working forest lands in Washington, Oregon and California. Learn more about Green Diamond Resource Company at www.greendiamond.com. In Oregon and Washington, the company’s forest lands are independently certified under the Sustainable Forestry Initiative standard. In California, Green Diamond’s forest lands are independently certified to Forest Stewardship Council (FSC®) standards. To serve Twin Creeks Timber’s Southern portfolio, Green Diamond Management Company will be establishing offices in the Southern U.S., initially in Athens, Georgia.