New Forests to Acquire Forestry Assets of Bunbury Fibre Plantations
SYDNEY – 27 February 2020 — Australia-based forestry investor New Forests today announced that investment funds managed by the firm have agreed to purchase the hardwood plantation assets of Bunbury Fibre Plantations from Mitsui Bussan Woodchip Oceania (“MWO”).
The Bunbury Fibre Plantations asset includes around 12,000 hectares of certified plantation hardwood, located around Bunbury, Western Australia. The Bunbury Fibre Plantation assets will continue to be managed for long-term supply of certified woodchips, principally targeting export markets. The plantation purchase includes the establishment of a long-term timber supply agreement to Bunbury Fibre Exports Pty Ltd, managed by MWO. Through the partnership, fibre from the plantations will continue to be processed through MWO’s port facilities in Bunbury.
The investment is the first made by New Forests’ third-round Australia New Zealand Forest Fund (“ANZFF3”) in Western Australia and brings the fund to greater than 70% deployment. New Forests’ Managing Director for Australia-New Zealand, Mark Rogers, noted, “With this acquisition, New Forests is proud to continue its proven track record of long-term investment in the future of the forest industry in Australia. We look forward to making further investments and partnerships in regional Australia.”
The ANZFF3 portfolio now includes diversified exposure to core forestry markets across Australia, as the new acquisition complements an existing Tasmanian softwood estate. The fund also has investments high-quality softwood estates in both the North and South Islands of New Zealand.
“As a locally based investor, and one of the largest in Australia, New Forests will continue investing in the long-term, sustainable management of Australia’s plantations and rural land sector,” said Rogers.