One of Australia's biggest superannuation funds and two overseas pension entities have acquired Tasmania's largest private forestry company.
UniSuper, the UK's Pension Protection Fund (PPF) and APG, a pension provider in the Netherlands, will each own a 33 per cent stake in Forico, it was announced on Thursday.
Forico operates a 170,000-hectare plantation estate in Tasmania which supplies sustainable hardwood domestically and internationally for uses including packaging and tissues.
The plantation was formerly owned by collapsed forestry company Gunns and in 2013 acquired by New Forests, which will continue managing on the ground.
Some 90,000 hectares are sustainable plantation for wood fibre production, with the remainder natural forest managed for conservation, biodiversity and cultural values.
"We're delighted to be investing in an asset of this scale and quality," UniSuper head of private markets Sandra Lee said.
"Not only is forestry a portfolio diversifier, but it also supports the global transition towards decarbonisation through carbon storage as well as substitution to sustainable timber material.
"We look forward to working closely with New Forests and our co-investors as we further develop this asset."
Financial details of the deal have been kept confidential.
Forico's current plantation rotation is expected to remove and sequester 24.7 million tonnes of carbon dioxide equivalent.
"Attracting and retaining long term investment partners in UniSuper, PPF and APG helps to secure a prosperous future for Forico and the forestry industry," Forico chief executive Evangelista Albertini said.
"It will allow us to continue to innovate, adopt market leading practices, and look at ways to add value to the natural environment."
