KEY POINTS:
United States timber company Weyerhaeuser is selling its stake in a Nelson plantation forest joint venture to its partner, Global Forest Partners.
The acquisition is part of Weyerhaeuser's plan to focus on its South American assets owned in partnership with GFP, which it will take over.
GFP investment funds will buy Weyerhaeuser New Zealand, and Weyerhaeuser's interest in the Nelson joint venture assets including about 67,000 hectares of plantation forests in Nelson/Marlborough and the Kaituna sawmill at Renwick.
"New Zealand already plays an important role in our firm's diversified international timberland investment portfolios, and this agreement enhances that position," said GFP Asia Pacific director Michael Edgar.
"This agreement also underscores the GFP view that New Zealand is an attractive forestry investment location."
The companies did not disclose terms of the agreement.
The 15-year-old Nelson joint venture tried selling its assets last year, but when they failed to attract a buyer they decided on the current plan.
GFP advises a number of timber investment funds in New Zealand, but missed out on buying the bulk of Carter Holt Harvey's forests last year, which were sold to Hancock Natural Resource Group.
- NZPA
