IP to Sell 163,000 Acres of Real Estate Properties in Southeast U.S.

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International Paper Co., Memphis, Tenn., USA, this past week said that it reached agreement to sell 163,000 acres of properties located in the southeastern U.S. for approximately $200 million in a transaction with an affiliate of Rock Creek Capital (the Partnership). A minimum of $160 million will be received at closing, with the balance, plus interest, to be received no later than three years from closing. In addition, IP will receive 20% of the Partnership's net profits after it achieves certain financial returns.

"This sale will substantially complete the monetization of our forest land and realty holdings," said Dave Liebetreu, IP's VP, global sourcing and forest resources. "The transaction represents good value in this economic environment and allows us to participate in the upside potential as the real estate market recovers."

The transaction is expected to close in the third quarter of 2010.