The announcement to sell 12,400 hectares of land as well as standing timber is subject to conditions. It also plans to sell its woodchip export facility in Albany to investment funds managed by Global Forest Partners (GFP). This is expected to be completed by June 2012.
The forestry sale still leaves Elders with a net forestry asset of about $80 million to exit.
The company announced in October 2011 that there would be a staged divestment of its forestry business. There are sales or agreements for almost two-thirds by area of Elders freehold land targeted for divestment.
GFP, a US Securities and Exchange Commission registered investment advisor specialises in the structuring and management of sustainable forestry investment. It has been actively investing in Australia since 1999 and has more than $3 billion in forestry assets under management worldwide.
Elders remaining pulpwood operations are the subject of ongoing divestment initiatives and comprise the management of about 42,000 hectares of standing timber on leased land in Albany, Bunbury and the Green Triangle and 10,900 hectares of freehold land and the management of 46,500 hectares of standing timber in the Esperance region.