22,000+ hectares Australian forestry estate acquired by AXA IM Alts

AXA Investment Managers Alternatives (AXA IM Alts) has announced the acquisition of the Green Triangle Forest Products estate in Australia from US-based Global Forest Partners, in a deal reported to be worth more than A$700 million.

The acquisition – AXA’s largest yet in timberland – will increase its forestry portfolio from a current 58,000 hectares located in France, Iceland and Finland to over 80,000 hectares.

The estate is one of the largest in Australia’s premier forestry region, the Green Triangle, which straddles the states of Victoria and South Australia.

AXA IM Alts head of Australia Kumar Kalyanakumar told IPE Real Assets that the bulk of the plantation was made up of radiata pine trees. The softwood timber produced from the trees will predominantly supply the housing and construction sectors in Australia.

“The biggest investment risk today is climate change, and, as an active manager, we are actively seeking to decarbonise our portfolio,” said Kalyanakumar.

“As an investor in infrastructure and real estate, these are assets with a sizeable carbon footprint. Investing in forestry allows us to start on the journey towards a low carbon environment. The beauty here is that forestry delivers the twin benefits of sustainable investment and strong risk-adjusted returns.”