New Forests and an institutional co-investment partner have acquired the plantation forestry assets of AKD, Australia’s largest softwood sawmilling business.
The AKD estate consists of 57 radiata pine plantations across more than 13,000ha located across Victoria, South Australia and New South Wales.
The AKD business, which produces more than one million cubic metres of timber products each year, representing approximately 20–25% of Australian production, will be held in the New Forests Australia New Zealand Landscapes and Forestry Fund.
Financial details were undisclosed.
David Shelton, managing director, Australia and New Zealand at New Forests, said: “AKD is a high-quality business operating at significant scale within a strategically important part of Australia’s forestry and wood products supply chain.
“The acquisition of AKD’s plantation estate provides our investors with exposure to high quality, sustainably managed plantations across key forestry regions in Australia. We see strong long-term fundamentals for sustainably produced timber, supported by Australia’s growing demand for housing and renewable building materials.”
Shane Vicary, chief executive officer of AKD, said: “This investment marks an exciting new chapter for AKD’s plantation estate. We look forward to working with New Forests to maintain a long-term connection with the estate through agreements for the supply of sawlogs and pulp log.”
AKD continues to own and operate the sawmilling business.
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