Gunns value lost in Triangle sale

A MONTH past the deadline Gunns set itself for an agreement on the sale of forestry land in the Green Triangle on the South Australia-Victoria border, it remains optimistic of finalising the auction by the end of June.
Industry sources aren’t so sure about the price. Gunns has the assets on its books at $254 million but word is it’s more likely to get about $100m-$150m for the land.
ANZ Corporate Advisory is conducting the sale for Gunns and a number of parties are thought to have signed confidentiality agreements. US group GMO Resources and Sydney-based timber investment company New Forest are the two most logical buyers.
GMO bought three-quarters of the pine plantations formerly owned by Auspine in the Green Triangle for $173m in 2009 and New Forests partnered Canadian pension fund Alberta Management Investment to buy Great Southern’s timberland for $415m in January. New Forests, which raised $500m for its Australia-New Zealand Forest Fund in October last year, is still thought to have about $400m of buying capacity.
Sale of the assets is unrelated to Gunns’ search for a financing partner for its $2.3bn Bell Bay pulp mill — slated to start construction in August — but finalising the auction will further strengthen its battered balance sheet, perhaps giving more comfort to a potential co-investor. Gunns chief Greg L’Estrange remains in discussions with possible financiers but needs to get a move on if he doesn’t want to let another deadline slide. — Nabila Ahmed, The Australian