Australia’s largest hardwood producer, Gunns Ltd, is selling off 75% of the softwood plantations it acquired through the takeover of Auspine earlier this year.
International investment management group GMO Renewable Resources is buying the 33,000ha of radiata pine for A$175.2m.
Gunns said the proceeds will be used to reduce debt levels.
“Timber supply to Gunns processing facilities will not be impacted as a result of the divestment, with Gunns continuing to manage the forest estate,” a Gunns statement read.
“Future harvested timber associated with this plantation area will be acquired at a market value from GMO Renewable Resources, with the harvest profile of the plantation reflecting a 28-year rotation.”
Gunns, which also manages more than 200,000ha of hardwood plantations, recently raised A$336m in a rights issue in a bid to strengthen its balance sheet.
