NEW YORK, April 1, 2008 /PRNewswire-FirstCall/ -- iStar Financial Inc.
(NYSE: SFI), a leading publicly traded finance company focused on the
commercial real estate industry, announced today that it has closed on its
previously announced sale of its TimberStar Southwest joint venture and the
venture's approximately 900,000-acre portfolio of forestland and related
assets for $1.71 billion, including the assumption of debt.
TimberStar Southwest purchased the properties from International Paper in
October 2006 for approximately $1.19 billion. iStar will receive net proceeds
of approximately $400 million which it will use to pay down its outstanding
interim financing facility. iStar's equity partners will receive the remaining
proceeds from the transaction.
The properties, located in Arkansas, Louisiana and Texas, were purchased
by an affiliate of Boston-based Hancock Timber Resource Group, a global
timberland investment management organization.
TimberStar Southwest is a joint venture between iStar subsidiary
TimberStar and equity investors MSD Capital, L.P., York Capital Management,
LLC and Perry Capital, LLC.
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iStar Financial Inc. is a leading publicly traded finance company focused
on the commercial real estate industry. The Company primarily provides
custom-tailored investment capital to high-end private and corporate owners of
real estate, including senior and mezzanine real estate debt, senior and
mezzanine corporate capital, as well as corporate net lease financing and
equity. The Company, which is taxed as a real estate investment trust
("REIT"), seeks to deliver strong dividends and superior risk-adjusted returns
on equity to shareholders by providing innovative and value added financing
solutions to its customers. Additional information on iStar Financial is
available on the Company's website at http://www.istarfinancial.com.
TimberStar, based in Atlanta, Georgia, focuses on brokering and managing a
geographically diverse portfolio of timber properties. Founded by iStar
Financial and two timber industry veterans, Jerrold Barag and John F. Rasor,
TimberStar combines proven expertise in timberland investment and operations
with the significant financial resources of a multibillion-dollar, publicly
traded specialty finance company.
SOURCE iStar Financial Inc.
Catherine Rice, Chief Financial Officer
Andrew G. Backman, Senior Vice President - Investor Relations
both of iStar Financial Inc.
Web site: http://www.istarfinancial.com