News reports have reported the sale of Gunns’ assets to New Forests for $330 million.
The sale involves only the freehold assets owned by Gunns, plantations, woodchipping and port facilities.
In some instances the freehold land grows trees owned by MIS investors which have been sold, with the proceeds to be split with MIS growers.
New Forests hasn’t acquired any leasehold interests, where leased land may grow Gunns’ trees and/or trees owned by Gunns’ MIS investors.
Gunns’ Receiver Korda Mentha (acting for Gunns) and Gunns’ Liquidator (acting for the MIS growers) will now try to sell trees on leasehold land to landowners. It is doubtful landlords will offer much.
New Forests are investment managers administering funds on behalf of long term investors, mainly pension funds. It is not known how much of the administered funds are foreign funds.
The MIS experiment is now dead and the plantation estate will probably halve in size over the next few years.