TORONTO, ON – The Ontario Teachers’ Pension Board (Ontario Teachers’) is pleased to announce that it has entered into a buyout transaction, whereby Tamarack Timberlands LLC, an investment vehicle owned by Ontario Teachers’, took direct ownership of approximately 870,000 acres of timber land.
The unique, large-scale portfolio of high-quality loblolly pine forest lands is spread throughout the southern United States and is third-party certified to the standards of the Sustainable Forestry Initiative, one of the leading standards in sustainable forest management around the world. The forest land portfolio provides significant diversification benefits to Ontario Teachers’, including diversity of locations, customers and tree age classes.
Teachers’ has invested indirectly in these forestry assets since 2006 through a significant equity interest in a larger forestry investment vehicle. The transaction will give Tamarack Timberlands LLC full control and governance of the assets and create greater opportunities to implement long-term value creation initiatives. Resource Management Service, LLC (RMS), one of the world’s largest providers of forestry investment services, will continue to act as the forestry investment manager for the asset.
The assets will continue to be operated using best management practices to ensure the long-term sustainability of the forest and to preserve the ecosystems and biodiversity of the forest.
“A responsible, sustainable and long-term approach to forestry has value beyond wood production,” said Christopher Metrakos, Executive Director, Natural Resources, at Ontario Teachers’. “These assets will continue to provide Teachers’ with stable and robust cash returns and long-term capital appreciation, while acting as a natural climate solution to help mitigate the impacts of climate change.
Ontario Teachers’ Department of Natural Resources has a global and diversified portfolio of private natural resource investments in energy, metals, forestlands, agriculture, aquaculture and natural climate solutions, with forestry assets in the United States, Canada and New Zealand.
Teachers’ recently committed to having net-zero greenhouse gas emissions across its portfolio by 2050. In September of last year, it set some of the best interim reduction targets industry: reduce the carbon intensity of the portfolio by 45% by 2025 and by two-thirds (67%) by 2030, compared to a 2019 baseline.
The Ontario Teachers’ Pension Board is the administrator of the largest single-employer pension plan in Canada, with net assets of C$227.7 billion (all figures as of June 30, 2021, unless otherwise indicated). It holds a globally diversified portfolio of assets, approximately 80% of which is managed internally, and has achieved an annual total net return of 9.6% since the plan’s inception in 1990. Ontario Teachers’ is an independent organization whose the head office is in Toronto. . Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East and Africa region office is in London. The defined benefit plan, which is fully funded as of January 1, 2021, invests and administers the pensions of the 331,000 active and retired teachers in the province of Ontario. For more information, visit otpp.com.
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