Gresham House will be appointed as asset manager for AXA IM’s 24,800-hectare forestry investment in Green Triangle Forest Products. Source: Timberbiz
Investment house AXA IM announced earlier this week it had taken control of the 24,000 hectares of pine plantations straddling the Victoria-South Australia border in a $775 million deal with US fund manager Global Forest Partners.
The appointment as asset manager is in line with Gresham House’s strategy to grow its international presence.
Gresham House is the UK’s largest commercial forestry manager, harvesting approximately 10% of the UK’s softwood annually and managing c.140,000 hectares, worth more than £1.8bn.
Comprising 22,200 hectares of productive area in the Green Triangle, which spans South Australia and Victoria, GTFP demonstrates high-growth rates for softwood and is a significant supplier of softwood logs to the Australian sawmill industry. With a long operating history, favourable terrain, and proximity to customers, GTFP has prime access to domestic and export markets.
“This second asset management appointment by AXA IM Alts to manage its growing forestry portfolio strengthens our position in the sector, at a time when international demand for forestry is taking off and is in line with Gresham House’s ambitions to launch an international forestry strategy for clients,” David Gardner, CIO of Forestry at Gresham House Asset Management, said.
“Not only does forestry satisfy ESG investment criteria, but it is also a portfolio diversifier and delivers uncorrelated returns that protect against inflation – characteristics that are particularly appealing in the current environment.”
Founded in 1857, Gresham House is a specialist alternative asset management group, dedicated to sustainable investments across a range of strategies, with expertise across forestry, housing, infrastructure, renewable energy and battery storage, public and private equity.