Offshore funds eye NSW forestry assets

NSW plantation assets worth about $1bn could come up for sale.

New Forest, Global Forest Partners, RMS and major Canadian pension funds are all expected to line up for the NSW forestry plantations that are expected to come up for sale by the state government.

The plantations are thought to be worth about $1bn and investment bank UBS is currently examining the assets on behalf of the state for a possible sale.

Offshore groups have lined up for Australian plantation assets in the past.

In 2012, the Campbell Group of the US purchased South Australian forestry assets in a deal that was backed by the Future Fund so it may once again become an interested buyer of the NSW plantations.

Canadian pension funds have invested in New Zealand forestry assets and are expected to be strong contenders to buy assets here in Australia.

Plantation forestry involves planting trees which may be managed for commercial timber production or environmental purposes.

Plantation establishment and management operations on both Crown land, including state forests, and freehold land is regulated and supported by the the NSW forestry plantation department department.