Stafford Capital Partners has established the $1.2 billion Stafford International Timberland Continuation Fund, a perpetual vehicle that consolidates a substantial portion of the firm’s global timberland holdings. The fund rolls up three existing core timberland funds—Stafford International Timberland VI, VII, and VIII—into a single structure that will hold 74 high-quality timberland assets worldwide. 

The fully deployed portfolio was assembled over seven years and now encompasses more than 6.3 million acres of commercial timberland across the U.S., New Zealand, Australia, and Latin America. It includes stakes in the second- and third-largest commercial timberland estates in New Zealand, one of Australia’s largest softwood forest estates, and over 1.6 million hectares of plantations in the U.S. South, spanning 37 assets in 15 states. 

Among existing investors in SIT VI, VII, and VIII, 73% chose to roll their interests into the new Continuation Fund, while 27% were replaced by fresh capital commitments. Stafford originally built the portfolio between 2011 and 2018 through a mix of secondary purchases, primary investments, and co-investments, and now directly manages roughly 21% of the underlying assets. 

The firm does not plan to raise additional capital for the Continuation Fund or pursue new acquisitions. Instead, it will focus on active portfolio management, consolidating around the strongest-performing, highest cash-yielding properties and selling down approximately 28% of the portfolio over the coming years. That disposition program is expected to help support cash yields of more than 8% over the next decade. 

“The Continuation Fund offers investors an opportunity to maintain exposure to a highly diversified, mature timberland portfolio with attractive cash yields and long-term value,” said Stephen Addicott, Managing Partner at Stafford Capital Partners.