Toronto-based investor & asset manager Brascan Corp has entered into a definitive agreement to buy Weyerhaeuser Co’s British Columbia coastal business for $C1.2 billion plus working capital.
Brascan will take over 59,000ha of freehold timberlands, 5 sawmills, 2 remanufacturing facilities & 3.6 million mÂ³ of associated annual Crown harvest rights. Brascan already controls 130,000ha of timberland in Maine, New Brunswick & Brazil.
President & chief executive Bruce Flatt said the company would own the new assets in partnership with institutional investors. “Timber assets have been recognised by institutional investors as a very attractive asset class and we have received considerable interest from prospective partners to participate in this investment with us,” he said.
Brascan focuses on property, power & infrastructure assets. It has $US20 billion of direct investments & $US7 billion of assets under management. Its $US7 billion commercial property portfolio contains 70 premier office properties, including the World Financial Centre in New York, BCE Place in Toronto & Canary Wharf in London. It’s also regarded as a likely contender for the O&Y property group’s $C2 billion of company & investment trust properties, which went on the market this week.
17 February 2005: Reichmann puts Canadian property giant O&Y on the block
Website: Brascan Corp