The Future Fund-backed The Campbell Group, US-based Hancock Natural Resource Group, and Sydney-based New Forests have commenced detailed due diligence on ForestrySA. Sources: Australian Financial Review, The Stock Journal
Canada’s Brookfield Asset Management is said to be considering its position, but is not running hard at the asset so it is expected that it will be a three-horse race for the forestry assets of South Australia, which should fetch around $700 million.
Indicative bids rolled into the State’s Treasury office about one month ago. There was a strong field of interested candidates, with about eight bids handed over.
UBS is advising the State, which is looking to sell the cutting rights for three harvests from the estate in the Green Triangle, regarded as one of the best softwood growing regions in the Asia-Pacific region.
The Campbell Group, based in Oregon, manages more than 1.2 million hectares and about $US5.5 billion worth of timberland assets.
New Forests, which has more than $1 billion worth of timber assets, has been hitting the acquisition trail hard and acquired Great Southern land for $415 million last year and bought 46,000 hectares of ex-Auspine forests from Gunns.
The South East Forestry Industry Roundtable, which was set up by the government to look after the industry and community longer term, signed off on contract conditions about three weeks ago. They included import and export restrictions, recreational use of land and timber rotations.
