After the timberland sale, The St. Joe Company will own approximately 184,000 acres of land located primarily in Northwest Florida. The remaining lands are or will be used in real estate development operations. CEO of The St. Joe Company Park Brady said of the deal, "This sale of timberland will help the Company concentrate on its core business activity of real estate development in Northwest Florida."
AgReserves Chairman of the Board Paul Genho said the corporation intends to maintain the land for timber and agricultural uses. "AgReserves has demonstrated its commitment to wise land stewardship and prudent resource management during more than 60 years of ranching and agricultural operations in east central Florida.”
The transaction between The St. Joe Company and AgReserves - a tax-paying affiliate of The Church of Jesus Christ of Latter-day Saints - will reportedly make the Mormon church the largest private landowner in Florida. The church will hold 672,834 acres, approximately two percent of the state’s land mass, when the deal is finalized.
The transaction, subject to standard closing conditions, regulatory approvals, and shareholder approvals, is expected to close during the first quarter of 2014. The final $565 million price is subject to an adjustment set out in the sales agreement. AgReserves will assume the existing agreements and contracts on the purchased timberlands.