New Forests eyes forestry plantations

New Forests is set to acquire the forestry plantations of Associated Kiln Driers (AKD) and Heywood Plantations, the approval of which currently sits before the Australian Competition and Consumer Commission (ACCC).

New Forests Australia New Zealand Landscapes and Forestry Fund (ANZLAFF) and ANZLAFF Sub 4 (New Forests ANZLAFF) are set to acquire the forestry plantations. Allianz will be a minor co-investor in the transaction.

The New Forests ANZLAFF funds are managed by New Forests Asset Management. The latter also manages the New Forests Australia New Zealand Forest Fund (ANZFF), which currently holds minority interests in two softwood log plantation estates within the Green Triangle forestry region, located between south-eastern South Australia and south-western Victoria. This is a separate fund from ANZLAFF.

AKD is an integrated Australian softwood forestry and timber processing company with softwood sawmilling operations. It has operations in Victoria, New South Wales and Queensland and more than 11,000 employees.

Together with Heywood Plantations, the two estates consist of softwood log plantations across four regions being Green Triangle, Central Victoria (Ballarat and Otway), southern New South Wales and north-east Victoria (Murray Valley) and Central New South Wales (Central Tablelands).

The total area amounts to approximately 10,933 hectares. The acquisition does not include AKD's sawmills.

Global investment manager New Forests has $10.6 billion in assets under management.

It invests in nature-based real assets, including timber plantations, conservation areas, carbon and conservation finance projects, agriculture, timber processing and infrastructure.

The ACCC said it assessing the impact of the acquisition on competition and is seeking stakeholder views. It is taking submissions or information in response to its questions regarding the acquisition by October 19.

One of the questions include the potential impacts the acquisition may have on competition, including whether any business controlled or managed by New Forests is a close competitor to the estates.