THE LYME TIMBER COMPANY LP Investing in Timberland and Conservation - - PowerPoint PPT Presentation

THE LYME TIMBER COMPANY LP

Investing in Timberland and Conservation Assets

Schoodic Woods LLC Overview

T HE LYME T IMBER C OMPANY

23 South Main St. | Hanover NH 03755 | 603.643.3300 | www.lymetimber.com Confidential

Peter R. Stein Managing Director peterstein@lymetimber.com

T HE LYME T IMBER C OMPANY

THE LYME TIMBER COMPANY OVERVIEW

− Lyme Timber is a private timberland investment management organization that invests in rural properties with high conservation/habitat values and partners with the leading conservation NGOs in the US to achieve superior investment returns as well as permanent conservation at a landscape scale. − Sample conservation partners include The Nature Conservancy, The Conservation Fund, The Trust for Public Land and regional and local land trusts − The Company’s principals have completed more than 100 transactions with land conservation NGOs and public agencies and have over 75 years of experience in land valuation, the design and negotiation of conservation easements, and timberland operations. − 95% of lands managed by Lyme are certified as sustainably managed under the criteria of the Forest Stewardship Council (FSC); 65% of the Company’s lands are dual certified under both FSC and the Sustainable Forestry Initiative (SFI).

A Brief History:

1976 – formation of The Lyme Timber Company 1992 – establishment of LTC Conservation Advisory Services 2002 – establishment of Fund I 2006 – establishment of Fund II 2010 – establishment of Fund III

T HE LYME T IMBER C OMPANY

SCHOODIC WOODS LLC

First investment by Fund III…

T HE LYME T IMBER C OMPANY

SCHOODIC WOODS LLC

T HE LYME T IMBER C OMPANY

• 3,200 acres
• Adjacent to Acadia National Park
• Undeveloped and primarily forested
• Contains more than a mile of shore frontage and 2

miles of shared boundaries with Acadia National Park

• Includes 15 acre Sargent’s Island

SCHOODIC WOODS LLC

• Conservation partners include:
• Maine Coast Heritage Trust
• Acadia National Park
• Friends of Acadia National Park
• thers

T HE LYME T IMBER C OMPANY

SCHOODIC WOODS LLC

Initial transaction design: Lyme purchases property in fee for $12 million Maine Coast Heritage Trust secures an

• ption for the purchase of a conservation

easement within 5 years $5 million low interest rate loan from MCHT $1 million option consideration payment Lyme and partners (MCHT, ANP, Friends of ANP) work together to pull together public and private funding for a conservation easement sale/purchase Land and Water Conservation Fund Private philanthropy Lyme sells conservation easement Lyme sells encumbered property to private individual or donates underlying fee land to Acadia National Park

BUT…..

T HE LYME T IMBER C OMPANY

SCHOODIC WOODS LLC

Final Deal Structure: Lyme purchases property in fee for $12 million Maine Coast Heritage Trust secures an

• ption for the purchase of a conservation

easement within 5 years if foundation does not conserve the property as promised $1 million option consideration payment Lyme is approached by private foundation with interest in buying Lyme out of contract with seller so it can donate the land to Acadia National Park themselves Lyme immediately sells equity interest to foundation, remains managing member because foundation would like to remain anonymous Lyme negotiates with seller and puts a down payment on property

T HE LYME T IMBER C OMPANY

SCHOODIC WOODS LLC

Questions?