10:57
As expected, Forestar Group Inc., an Austin-based oil, gas, lumber and real estate company, is pivoting away from the oil and gas portion of its business.
The company announced Tuesday that its board of directors unanimously approved and initiated a plan to focus on its core real estate business.
Forestar has a 100 percent ownership stake in Eleven, a 257-unit multifamily project in Austin near I-35 and 11th street. It also owns a 100 percent stake of the Radisson Hotel. It also has a number of properties in development in Dallas, Denver, Nashville and Houston.
Earlier this year, under pressure from activist investors, Forestar Group said it was cutting back on its oil and gas business by 50 percent, closing its Fort Worth operations in the process. Flavious Smith Jr., who headed up the company's oil and gas division, left the company abruptly in December , taking a $2 million separation agreement on the way out.
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The company now plans to acquire and develop residential and mixed-use communities, with a focus on multifamily properties, by harvesting the cash flow from its existing oil and gas operations. it also plans to try and convert its 70,000 acres of timberland holdings into real estate properties over time.
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