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iStar Financial Completes $1.7 Billion Asset Sale from TimberStar Southwest Joint Venture
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.
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