The sale of Great Southern's timber plantations to a Canadian institutional fund manager is a step towards making the Australian timber industry internationally competitive, the firm now in charge of managing the land says.
Alberta Investment Management Corporation and its partner, Australia New Zealand Forest Fund, bought the 2,500 square kilometres of Great Southern forestry land from receivers at McGrathNicol, for $415 million in the largest private forestry estate transaction in Australia to date.
According to a statement released by AIMCo, Sydney-based timber management firm New Forests will manage the estates on behalf of AIMCo and ANZFF.
Gunns Plantations and Elders Forestry will remain in place as the responsible entities for most of the plantations, receivers from McGrathNicol said.
The assets are predominantly located in forestry regions around Albany, Bunbury, and the Green Triangle region of south eastern Australia.
"This transaction is indicative of the trend to move towards institutional ownership of Australia's plantation forestry estate, which will allow the industry to consolidate and become internationally competitive," New Forests managing director David Brand said.
"As a local investment manager specialised in timberland management, New Forests has the expertise and capacity to manage this diverse and valuable forestry estate on a sustainable and commercial basis."
AIMCo chief executive, Leo de Bever, said the fund was looking to capitalise on growing world demand for timber and agricultural products.
"We are delighted to be part of this extraordinary opportunity to assist in the development of these Australian assets, at an attractive return to AIMCo's clients," Mr Bever said in a statement.
McGrathNicol chairman, Tony McGrath said the receivers were "very pleased" with the sale process.
"The sale of the land assets markets a positive step in Australia's forestry sector with ownership moving to institutional owners with the support of an experienced timberland fund manager," Mr McGrath said.
Great Southern was placed into administration and receivership in May 2009 after the downturn of the MIS industry during the global financial crisis.
