CANBERRA (Dow Jones)--Receivers McGrathNicol said Thursday it plans to sell the blue gum forests in Australia developed by Great Southern Ltd. (GTP.AU).
The estate consists of 269,000 hectares of freehold forestry land with a net productive area of 167,500 hectares, mostly in the prime forestry regions of Albany and Bunbury in Western Australia and the Green Triangle region of south eastern Australia, McGrathNicol said in a statement.
"Great Southern Forestry is Australia's largest freehold hardwood estate, boasting a geographically diverse and mature portfolio with significant woodflows, ideally located for the key export markets of Asia, in particular Japan and the fast growing Chinese market."
The land comprises more than 640 individual freehold properties providing flexibility for estate management and land use opportunities, it said.
The vast majority of the plantations have been established with Tasmanian blue gum, the premium hardwood woodchip trees used to manufacture high quality paper. Most of the plantations are managed by units of Gunns Ltd. (GNS.AU) or Elders Ltd. (ELD.AU) on behalf of investors in managed investment schemes, which provide an upfront tax break on investments.
"The receivers will consider all options for the realisation of the Great Southern Forestry estate, including a sale of land only, or land and trees," while investors may be asked to consider and vote on a consensual winding up of one or more schemes, in return for receiving cash or other consideration, it said.
The process is expected to commence shortly with initial bids due in late July and is anticipated to be completed by the end of 2010.
"Our priority is to ensure the sale process maximises both value and certainty for all stakeholders, including the investor growers and secured creditors of Great Southern," Tony McGrath of McGrathNicol said.
-By Ray Brindal, Dow Jones Newswires; 612 62080902; [email protected]
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(END) Dow Jones Newswires
June 09, 2010 20:20 ET (00:20 GMT)
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