Sachem Property Co., Limited
List of Deals
- 1967 MacMillan Bloedel head office building 6-3/8% first mortgage notes due January 1, 1999; 7% first mortgage notes due January 1, 1999; 2 volumes
Sachem Property Company appears to have been formed in 1967 as a financing company for a single purpose: to lease land from MacMillan Bloedel Limited (a Canadian timber company), build offices on the property, and sublease the land back to MacMillan Bloedel.
Sachem Property Associates originated as a New York partnership between Crystalgate Associates and the Lehman Commercial Paper Corporation. Further information about Crystalgate appears to be unavailable. Lehman Commercial Paper Corporation was an affiliate of Lehman Brothers. Sachem incorporated as Sachem Property Company in Vancouver, British Columbia, in 1967. Sachem entered into a deal to finance, build, and lease an office building for MacMillan Bloedel. The deal was financed by two first mortgages.
MacMillan Bloedel was a large forest products company in British Columbia. The company originated as two lumber companies, H. R. MacMillan Export Company (founded in 1919) and Bloedel, Stewart, and Welch (founded in 1911). The companies each harvested from timberlands and ran mills. The companies agreed to merge in 1951, forming the largest lumber company in British Columbia. H. R. MacMillan remained chairman of the new company. In 1960 MacMillan & Bloedel acquired the newsprint producer Powell River (founded in 1911). The acquisition allowed the company to expand its sales of newsprint and wood pulp products.
During the 1960s MacMillan Bloedel shifted toward international business. The new MacMillan Bloedel offices in Vancouver, constructed by Sachem, provided a headquarters for the enlarged and globally oriented company.
MacMillan Bloedel was bought by Weyerhauser, another lumber giant in 1997 for $2.45 billion.
Note: There are several books on the British Columbia and Canadian forestry businesses. Most notable is Donald McKay's Empire of Wood: The MacMillan Bloedel Story (Vancouver: Douglas & McIntyre, 1982).