Weyerhaeuser To Sell New Zealand Forest Assets
Feb. 13, 2006 - Weyerhaeuser Company said that one of its subsidiaries, Nelson Forest Products Company, intends 67,000 hectares (166,000 acres) of forests and a sawmill in New Zealand, which are known as the "Nelson Forests Joint Venture."
The assets are jointly owned by Nelson Forest Products Company and RII New Zealand Forests I, Inc., a timber investment fund advised by Global Forest Partners LP.
The operations of the joint venture are managed by Weyerhaeuser New Zealand, Inc. The assets include approximately 67,000 productive hectares of plantation forests in the Nelson/Marlborough region and the Kaituna sawmill at Renwick, which has a log input capacity on a single shift of 80,000 cubic meters annually.
"New Zealand is an important component of a diversified international timberland investment portfolio," said Michael Edgar, Director of Asia Pacific Investments, Global Forest Partners LP. "The decision by the specific investor clients of GFP in the Nelson Forests Joint Venture to realize the value of their investment after a holding period of over 14 years does not represent a change by GFP in its view of New Zealand as an attractive forestry investment location. In fact, the vast majority of our global funds and separate accounts include at least one New Zealand investment within their portfolio."
"With the current joint venture agreement set to expire later this year, we reviewed our options and determined to seek a buyer for these assets," said Gary Drobnack, vice president of Weyerhaeuser Forest Products International."
SOURCE: Weyerhaeuser Company