Kangaroo Island Plantation Timbers (KIPT) has signed a $55 million deal to buy the entire Forestry Investment Trust (FIT) estate managed by New Forests Asset Management on Kangaroo Island, South Australia, as the company said in the press release received by Lesprom Network.
The purchase includes all of the plantation land, standing timber and the Ballast Head site proposed by New Forests as an export facility.
KIPT anticipates the financial transaction will be finalised by April 28 next year.
The deal is the biggest real estate sale yet transacted on Kangaroo Island and delivers 19,000 ha of land, of which more than 10,700 is planted with Tasmanian blue gum (eucalyptus globulus). The current standing volume of timber is estimated at 2.4 million green metric tonnes.
The FIT deal effectively quadruples the size of KIPT’s plantation area and triples its standing timber resource.
Kangaroo Island Plantation Timbers is Australia’s only listed timber company. It manages a wholly-owned portfolio of hardwood and softwood forestry plantations on Kangaroo Island, South Australia.
