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New Forests out of race for FEA

New Forests is believed to be out of the race to buy Forest Enterprises Australia, with sources suggesting that RMS — the world’s second-largest timber management company — has positioned itself as the successful buyer. Source: The Australian

New Forests recently purchased Gunns’ forestry portfolio for about $330 million and was believed to be a strong contender to buy FEA, but is understood to have missed out on price.

Resource Management Services, a private timberland investment firm, serves pension funds, endowments, foundations and family offices.

The company, based in Birmingham, Alabama, is employee-owned and managed, with ownership broadly distributed throughout the firm and has offices in the US, Brazil and China, where it owns forests.

The company had been among five groups in the running to buy FEA, with others including New Forests, US-based Campbell Group, GMO Renewable Resources and Global Forest Partners.

New Forests was thought to be the favoured group to buy the portfolio after it this year successfully raised $707m for its second fund.

FEA was put on the market in December through Gresham and Deloitte, shortly after timber company Gunns came up for sale.

The sale price for the forestry business could be anywhere between $200m and $400m, sources said.

On offer is 97,900ha of mature hardwood forests and 46,000ha of land in NSW, Queensland and Tasmania.

The sale will offer hope to thousands of investors who poured $400m into the business over many years.

The groups in the running to buy FEA are also thought to have competed to secure the Gunns’ forestry assets, which were sold through Moelis and Korda Mentha.