A range of medium-sized timber plantations will hit the market as institutional investors look to aggregate smaller allotments and gain a foothold in the strong softwood market. Source: The Australian
CBRE head of timberland transactions David Smith said he expected properties valued at a combined $50 million to be listed in the next month.
The first listing is the Gippsland aggregation of 789ha, being sold by Jelfor Treated Timbers, owned by the Jelleff family, operators of a processing facility in Traralgon.
“This property presents an opportunity for investors to inject capital in the timber market at a time when it is flourishing under high product demand and favourable economic conditions,” Mr Smith said.
“These mature Pinus radiata plantations are fast approaching their second thinning or final harvest, which underpins quick reliable returns within one of Australia’s premier growing regions.”
The property could sell for up to $10m, as could the Southern Plantation aggregation in Colac, to be listed this week.
Mr Smith said more properties would follow in the Murray Valley in NSW, the central Gippsland region and between the Western District and the Green Triangle in Victoria.
A number of distressed portfolios, many far larger than the individual aggregations on the market, have recently been sold.
RMS purchased Forest Enterprises Australia for between $125m and $150m from Deloitte on behalf of investors.
