Natasa Sikman
The acquisition of Forico and Tasmania’s largest hardwood plantation estate last week sends a clear signal to Government and future investors both in Australia and globally about the world class sustainable management practices in Australia, according to the Australian Forest Products Association. Source: Timberbiz
Three superannuation companies have purchased Tasmania’s largest private forest management company Forico which was created by global investment group New Forests to manage 173,000 hectares of forest after acquiring it from Gunns in 2013.
Under the agreement, the three investors – Australian superannuation fund UniSuper, the UK’s Pension Protection Fund (PPF), and APG Asset Management N.V (APG) on behalf of its Dutch pension fund client ABP – will each own 33% of Forico and the forestry estate. New Forests will be retained to provide investment management services.
It also includes two wood processing mills, a seedling nursery and a technology laboratory.
AFPA Acting Chief Executive Officer Natasa Sikman said it was wonderful that New Forests will continue to be the investment manager and that it would be looking at ways to add further value by harnessing the growth of the circular bioeconomy, carbon projects, natural capital and biodiversity markets.
The announcement of the acquisition adds to the important discussions held this week at the Asia-Pacific Forestry Commission (APFC), where Forestry Minister Murray Watt heralded the importance of the bio-circular economy and the forest products sector’s role in tackling climate change.
It is an exciting time for Australia’s sustainable forestry and forest products sector as decision makers and investors point in the same direction to increase the positive impact of the circular bioeconomy. A key solution to meet the goal of the Paris Agreement is to decarbonise emission intensive sectors such as the built environment.
“AFPA congratulates NewForests, Forico and the acquisition partners on this deal and looks forward to further promoting the environmental and economic credentials of Australia’s forestry and forest product sector,” Ms Sikman said.
