By Gerelyn Terzo, Global AgInvesting Media

Australian fund manager New Forests has offloaded one of its assets. New Forests has sold South Australia’s Limestone Coast plantation forestry estate to OneFortyOne, a forestry and sawmill company. According to the buyer, this deal marks the single-biggest Australian forestry land transaction in a decade, representing a pivotal moment in the fund’s lifecycle and a likely strategic return of capital for institutional investors. The estate was acquired by New Forests in 2014, and the sale was part of the unwinding of its Australia New Zealand Forest Fund 2.

While the firms are keeping the size of the deal close to the vest, reports suggest it was valued at A$300 million (US$195 million). OneFortyOne CEO Wendy Norris stated, “We are thrilled to expand our Green Triangle, Australian plantation forestry estate by 15 percent, adding close to 15,000 hectares (37,065 acres) of plantable area.”

In Western Australia, strong demand persists for timber plantation land, driven by a constrained timber supply and targeted government initiatives. The long-term availability of harvestable timber is notably limited, a challenge compounded by the Western Australian government’s policy to shutter logging of native forests.

New Forests, known for its expertise in sustainable forestry and natural capital investment across regions, has been actively managing the estate for over a decade. David Shelton, Managing Director, Australia and New Zealand for New Forests, shared with GAI News the initiatives that have been taken under the firm’s stewardship, including:

• Rationalized the estate via acquisitions and divestments to build it into a freehold asset with ~15,600 ha of productive area across Green Triangle region which spans the borders of South Australia and Victoria (~90 percent) and Western Australia (~10 percent)
• Developed route to market by signing long term port access agreements in Portland (Victoria) and Albany (Western Australia).
• Diversified the markets by introducing softwood plantations to what was originally a pure hardwood estate.
• Introduced new revenue streams by registering some carbon programs.

New Forests’ approach involves long-term value creation through active and responsible forest management, aiming to deliver consistent returns while upholding high ESG standards. The sale of this mature asset demonstrate’s the firm’s capability in navigating the full investment cycle for its clients.

Limestone Coast offers productive forest resources, comprised of both Bluegum hardwood and Radiata Pine softwood plantations, alongside available plantable ground. This substantial timber asset is part of a total 20,500 hectares (50,656 acres) of freehold land spread across the rich forestry zones of the Green Triangle and Western Australia, a region famous for its critical role in Australia’s timber industry.

This estate has been cultivated to yield high-quality timber products, contributing significantly to both regional economies and the broader Australian forestry sector under New Forests’ ownership. Existing property manager SFM will continue to oversee hardwood and carbon-related management services on behalf of the buyer across the estate. OneFortyOne said it scooped up the Limestone Coast asset with a view to secure domestic sawlog supply for the foreseeable future.

Forestry as an asset class has increasingly commanded attention from institutional investors for its unique risk-return profile. It is often sought for its ability to provide attractive, diversified returns that are largely uncorrelated with the traditional financial markets and act as a hedge against inflation.

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