Sale of Gunns portfolio attracts global interest
Prospective buyers range from Australian pension funds to high net worth individual investors and overseas pension funds.
A price tag of about $50 million was suggested for the 94 forestry products in the portfolio.
The Tasmanian assets are being sold by CBRE Agribusiness on behalf of Peter Anderson and Shaun Fraser of McGrathNicol as "Joint and Several" receivers and managers of the Australian Forestry Plantations Trust (AFPT) and the Australian Forestry Plantations Trust No. 2 (AFPT 2).
Gunns, based in Tasmania, was placed into voluntary administration in September last year after the ANZ-backed syndicate withdrew support for the forestry group's recapitalisation. This also included the group's long-running attempt to obtain approvals to develop a timber pulp mill at Bell Bay, estimated to cost $2.3 billion.
The agent, David Smith, CBRE's head of timberland transactions, said the sale campaign had already generated wide-ranging preliminary interest.
Mr Smith said two portfolios were being offered for sale in one line or separately. They comprise 94 properties with a total of about 11,757 hectares of hardwood plantation across a total land title area of 21,777 hectares.
In addition to the timberland assets, the portfolios include 17 residential houses as well as significant existing infrastructure in the form of an extensive network of internal and external roads.
"We have already fielded inquiries from domestic pension funds and institutions, local farmers, high net worth investors, offshore institutions and even an international pulp mill owner interested in future fibre security," Mr Smith said. "The portfolio has generated interest from a biomass perspective, from parties looking at the potential future supply for production of biofuels, as well as from prospective purchasers considering the managed conversion of the land back to various forms of agriculture."
Frequently Asked Questions about this Article…
The Gunns portfolio consists of the AFPT and AFPT 2 timberland portfolios, which include 94 forestry products and significant infrastructure. It's attracting global interest due to its potential for timber production, biofuel supply, and agricultural conversion.
Potential buyers for the Gunns portfolio include Australian pension funds, high net worth individuals, overseas pension funds, local farmers, and even international pulp mill owners interested in securing future fibre supply.
The estimated value of the Gunns portfolio is around $50 million, which includes 94 forestry products and a total land title area of 21,777 hectares.
The Gunns portfolio includes 94 properties with hardwood plantations, 17 residential houses, and an extensive network of internal and external roads, covering a total of 21,777 hectares.
Gunns was placed into voluntary administration after an ANZ-backed syndicate withdrew support for the group's recapitalisation, which included a long-running attempt to develop a $2.3 billion timber pulp mill at Bell Bay.
The sale of the Gunns portfolio is being managed by CBRE Agribusiness on behalf of Peter Anderson and Shaun Fraser of McGrathNicol, who are acting as 'Joint and Several' receivers and managers.
The Gunns portfolio can be purchased either in one line or separately, offering flexibility to potential buyers interested in different aspects of the portfolio.
Potential uses for the Gunns portfolio assets include timber production, biofuel supply, and the managed conversion of land back to various forms of agriculture, making it an attractive investment for diverse interests.
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