Gunns is raising $64 million through the sale of part of its stake in a plantation forest investment trust. The company has told the Stock Exchange it will sell 58 per cent of its stake in the Green Triangle Forest Trust, which owns plantations in Victoria and South Australia. Sources: ABC News, AAP, ABC Rural, Hedgeweek
The redemption of 58.18 per cent of the units that Gunns holds in the Trusts will result in its stake in the Trusts falling to 16.6 per cent from 39.8 per cent. The sale is due to be finalized in early August.
New Forests has introduced new investors to make an investment in the Green Triangle Forest Trust (GTFT).
GTFT was established in March 2012 through the acquisition of the plantation assets of Auspine Ltd by New Forests Australia, New Zealand Forest Fund and a co-investor.
The Trusts were created to simplify ownership of the former Auspine softwood forest estate in the Green Triangle region between South Australia and Victoria.
The 46,000 hectare radiata pine estate is located in the Green Triangle – the border region of south-eastern South Australia and western Victoria.
Under New Forests’ management, the estate is expected to continue to supply the processing mill in Tarpeena for domestic structural timbers through long-term agreements, as well as support local businesses providing property management, harvest, and transport activities.
“The GTFT pine plantations are a high-quality forestry estate and an important part of the Green Triangle region’s forest industry,” said David Brand, managing director for New Forests.
“New Forests aims to create stable ownership and sustainable management of these forests; this approach aligns with the long-term perspective of our institutional investor clients.”
New Forests manages approximately 375,000 hectares of plantation land and timber plantations across Australia.