Super fund pursues Timbercorp assets

Targets Timbercorp Forestry grower investors

By Alice Uribe
Fri 03 Jul 2009

Timber industry superannuation fund First Super indicates interest in acquiring distressed Timbercorp assets.

Timber industry superannuation fund First Super has signalled its interest in acquiring Timbercorp Forestry assets.

Together with a consortium that includes an international investor, the proponent of the Penola Pulp Mill and the management of Timbercorp Forestry, the industry fund has begun discussion with Timbercorp Forestry MIS grower investors.

First Super has also indicated plans to establish a new forestry company that draws on the management expertise from the Timbercorp business.

"As the industry superannuation fund for the forestry, forest products and pulp and paper industries, First Super is well placed to consider profitable long-term investments in Australia's plantation timber assets," according to First Super.

"This process is the initial step to examine the possibilities and determine if appropriate opportunities exist."

First Super is considering the current debt and outstanding ongoing land rental and forest management obligations and has requested that grower investors agree to an independent valuation for the trees.

"This long-term focus provides the best prospect for MIS grower investors to receive commercial value for their assets," a First Super spokesperson said.

The consortium has held discussions with other relevant asset holders, including the owners and security holders of freehold land and the leasehold land.

First Super was established in 2008 by the merger of the Timber Industry Superannuation Scheme, the Furniture Industry Retirement and Superannuation Trust and the Pulp & Paper Workers' Superannuation Fund.

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