The property will be held in a timberland REIT and owned by Cathlamet Timber Company. It will be managed by The Campbell Group. Willamette Industries acquired these assets as part of a larger timberland purchase from Cavenham Forest Industries in 1996. In September 1998, Willamette announced plans to sell the forest lands as they were not critical to the company s Northwest operations. The Committee also selected UBS Brinson Partners to help the System invest in timberland outside the United States.
All contract awards are contingent upon satisfactory completion of contract negotiations.
In an effort to seize promising opportunities in the timber markets abroad, CalPERS will work with UBS Brinson Partners of West Lebanon, New Hampshire to develop a strategic plan for future timber purchases internationally. Currently, CalPERS policy on timber investments allows for up 10 percent of the System s timber portfolio to be invested internationally. The structure of the timber portfolio manager contracts will be modeled after CalPERS core real estate program. The pension fund will achieve alignment of interest with each timber manager through provisions such as co-investments, dedicated management teams and incentive fees. The System provides retirement and health benefits to more than 1 million state and public employees and their families.