Kangaroo Island Plantation Timbers (KIPT) has signed a $55 million deal to buy the entire Forestry Investment Trust (FIT) estate managed by New Forests Asset Management on Kangaroo Island. Source: The Islander
The purchase includes all of the plantation land, standing timber and the Ballast Head site proposed by New Forests as an export facility: assets previously owned by Great Southern and then Gunns Limited.
A Heads of Agreement was signed on Friday, 21 October with the final contract to be signed by the end of this month.
KIPT anticipates the financial transaction will be finalised by 28 April next year.
The deal is the biggest real estate sale yet transacted on Kangaroo Island and delivers 19,000 hectares of land, of which more than 10,700 is planted with Tasmanian blue gum (eucalyptus globulus).
The current standing volume of timber is estimated at 2.4 million green metric tonnes.
The FIT deal effectively quadruples the size of KIPT’s plantation area and triples its standing timber resource.
KIPT also announced that it had lodged an application for Major Development Status with the State Government for its proposed $25 million multi-user deep water wharf project at Smith Bay.
KIPT believes the Smith Bay site offers significant advantages over Ballast Head and has begun several important studies and assessments in the leadup to lodging its development application.
Managing Director John Sergeant said the company remained committed to the thorough and rigorous assessment of its proposed development, in consultation with the Kangaroo Island community.
He said there would be further announcements regarding capital raising and funding for the FIT acquisition and the wharf development. He thanked the Commissioner for Kangaroo Island, Wendy Campana, and her departmental colleagues for their assistance and guidance.
Mr Sergeant said the company was committed to working with local stakeholders.