Forest Enterprises confident on sales
Forest Enterprises is confident it will sell the 67 forestry properties it has on the market.
“We always sell developed properties each year and use the proceeds to reduce some debt and acquire more land,” Forest Enterprises chief executive officer Andrew White told Money Management.
“We have found there are people with a genuine interest in buying our properties and holding them until they can use them for alternative purposes.”
The forestry properties with investor trees on them are located in south east Tasmania, south east Queensland and northern New South Wales.
“We are selling approximately 15 per cent of our property portfolio and we hope to achieve a price of about $30 million,” White said.
“Our gearing is about 40 per cent, which is not high compared to some of the companies in the press at present.”
The Tasmanian forestry company owns 94,500 hectares spread across 600 properties in Tasmania, Queensland, New South Wales and the Northern Territory.
He admitted the timing of the sale might have been better, with both Timbercorp and Great Southern going into administration in recent weeks.
“We have had good interest despite what has happened in the past couple of weeks,” White said.
“If we get a good price for the properties, we will sell.”
Forest Enterprises also has a plantation scheme in the market this financial year, but White isn’t concerned about the predicted inflows.
“We have got a diversified business and the company is better placed to put up with market uncertainties."
Meanwhile, the impact of more land coming on to the market from the administrators of Great Southern and Timbercorp has yet to be ascertained.
White said his company was pleased to have its property offering in front of potential buyers before the predicted flood of land.
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