By Gerelyn Terzo, Global AgInvesting Media
Thousands of acres of highly productive pine timberlands are changing hands in Australia. Timberland investment manager Manulife Investment Management, which sits under the umbrella of Manulife Wealth & Asset Management, has acquired approximately 18,100 acres of strategically situated radiata pine-rich land through the Manulife Forest Climate Fund from investment firm New Forests to support carbon credits and timber yields. Spanning four properties in the Murray Valley region of New South Wales, the plantation is nestled between the Albury and Tumbarum communities.
In early 2025, Manulife’s Forest Climate Fund reached final close with $480.1 million in investor commitments. This transaction marks the fund’s first international timberland investment. The deal features a pair of registered forest carbon projects under the Australian Carbon Credit Unit program that enable both timber production and certified environmental offsets. The sale forms part of the divestment program for New Forests’ Australian New Zealand Forestry Fund 2, where the assets had been held for a decade, while bolstering Manulife IM’s timberland acreage under management in Australia to over 1.36 million acres.
The new acquisition introduces thousands of acres of radiata pine plantations, featuring a mix of mature stands primed for harvest and younger plantations set for long-term growth. This transaction marks a pivotal expansion for the Forest Climate Fund, venturing beyond North American borders for the first time. The seller, New Forests, had nurtured the assets for a full decade; this handover aligns with the firm’s ongoing divestitures from the Australian New Zealand Forestry Fund 2, streamlining its portfolio while passing the baton to a steward with great scale.
Manulife IM Global Head of Timberland Investments Tom Sarno stated, “Our team has 27 years of experience managing timberland investments in Australia on behalf of clients. The assets, which are Manulife Forest Climate Fund’s first international timberland investment, are attractively stocked with a mix of mature and young radiata pine plantations, and close to well-established timber markets and leading Australian producers of forest products. We look forward to managing the property to generate timber, forest carbon and other natural capital values.”
Manulife IM oversees 5.6 million acres of timberland spanning the U.S., Canada, New Zealand, Australia, Brazil and Chile, a portfolio valued at $11.7 billion in assets under management. This timberland arm weaves into the firm’s expansive private markets tapestry, which also encompasses agriculture, infrastructure, private equity, private credit and real estate, all geared toward resilient, impact-driven returns.
Timberland is emerging as a cornerstone of climate-resilient portfolios, where plantations generate carbon revenues and biodiversity alongside traditional harvests. As regulatory pressures mount and corporate net-zero pledges come due, deals like Manulife’s highlight how industry participants are transforming timber acres into engines of enduring value, bridging today’s markets with future goals.
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