Willmott Forests launches timber fund

Business as usual

By Vishal Teckchandani
Tue 12 May 2009

Willmott Forests has defied the agribusiness gloom, launching a fund which the group sees as ideal for superannuation-style investors.

Integrated forestry company Willmott Forests has launched a new investment vehicle, which the group sees as ideal for superannuation-style investors.

"It's business as usual at Willmott Forests with all our plantation management obligations on track and the launch of this exciting new investment vehicle," Willmott Forests chief executive Marcus Derham said.

The Premium Timberland Fund No.1 provides a diversified investment in the Australian forestry sector by investing in both forestry and land assets.

The fund is designed to enhance investor returns and reduce risk by generating income and capital gains from multiple sources, including rental income from the rural land owned by the fund, harvest income from the African mahogany plantation and capital growth in the rural land value.

The Premium Timberland Fund No.1 has been awarded a four-star rating from Australian Agribusiness Group.

Willmott Forests also provided an early update on the status of its forestry operations.

"Our normal reporting of these operations via our annual growers report, which is distributed in September each year, will continue," the group said.

"Willmott Forests' woodlot sales in FY2008 gave rise to an obligation to establish 11,471.5 hectares of new plantations by 30 June 2009.

"These plantations are being established with three species across seven regions."

On 28 April, Willmott Forests said the appointment of voluntary administrators to Timbercorp has created some market uncertainty about the forestry management investment scheme model.

However, Timbercorp's current position should not be viewed as an indicator of the financial position or viability of other industry participants.

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