The forestry assets of failed rural land owner The ARK Fund have been sold for $46 million in a deal struck by receivers from McGrathNicol with an international timber investment group.
The New Zealand-based international division of US investment group GMO Renewable Resources is believed to be the buyer.
McGrathNicol partner James Thackray confirmed the deal would not covered the group’s debt to secured creditor National Australia Bank but the group’s horticultural assets were set to be readvertised for sale tomorrow.
Even with strong interest in the horticultural land, mainly mangoes and some stone fruit spread around Queensland and parts of WA such as Kununurra and Dandaragan, Mr Thackray thought it unlikely that unsecured creditors would receive even a partial payout.
The Ark Fund collapsed in mid-2010 owing about $62 million.
It was the listed property partner of managed investment scheme player Rewards Group which failed at around the same time.