New Forests to Acquire 46,000 hectare Softwood Plantation Estate in Tasmania

12/2011 Download this as a PDF

Sydney, Australia (9 December 2011) – The Australia New Zealand Forest Fund (“ANZFF”), a forestry
investment fund managed by Sydney-based New Forests Pty Limited (“New Forests”), has agreed to
acquire a 46,000 hectare (114,000 acre) softwood plantation forestry estate located in the north of
Tasmania. The forestry estate will be acquired from a joint venture between Forestry Tasmania and a
global timber investment manager for a total purchase price of $156 million. New Forests has lodged an
application with the Foreign Investment Review Board, and the transaction is scheduled to complete in
January 2012.
New Forests’ Managing Director, David Brand, commented, “New Forests is pleased to acquire this
attractive forestry estate, which is an important component of the sustainable plantation timber industry in
Tasmania. These plantations are on generally flat to rolling terrain, with good rainfall and a history of
good management. The estate makes for a high-quality, long-term investment opportunity.” New Forests
currently manages over 275,000 hectares of timberland properties across Australia on behalf of its
institutional investment clients.
The transaction is based on acquiring the plantations via a Forestry Right on Crown Land, which provides
for ongoing operations through 2069. The forest currently produces over 550,000 cubic metres of
softwood timber per annum, largely under contract to local processing facilities. With a diversified age
class structure across the estate there will be a steady and growing cash yield over time.
The forestry estate is certified to the Australian Forestry Standard, and ongoing operational activities will
continue to provide local employment opportunities to local businesses. New Forests will manage the
forestry estate in accordance with the company’s social and environmental management system,
ensuring long-term sustainability with replanting programs and environmental restoration using native
plantings in sensitive areas, such as riparian zones.
Mr. Brand remarked, “With institutional investors seeking long-term, stable assets to counter the current
volatile economic conditions, these softwood plantations make a strong addition to our investment
portfolio.”

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