ELDERS today signed agreements to sell freehold land, assets and standing timber in Albany, Bunbury and the Green Triangle.The company said the deal which is subject to a number of conditions with Global Forest Partners, which manages investment funds, would result in the sale of about 12,400ha of land, standing timber and its woodchip export facility at Albany.
The agreements also provide for the conditional sale of some MIS grower-owned standing timber in the three regions.
Elders said it expected to receive cash progressively and expected net cash proceeds to exceed $45 million.
"We now have sales or sales agreements in place for nearly two-thirds by area of the freehold land that we have targeted for divestment," Elders chief executive Malcolm Jackman said.
The transaction will be phased and is expected to be completed by the end of the June quarter.
The company said its remaining pulpwood operations were subject to ongoing divestment initiatives at various stages of maturity and comprise of management of about 42,000ha of standing timber on leased land in Albany, Bunbury and the Green Triangle and 10,900 ha of freehold land and the management of 46,500ha of standing timber in the Esperance region.
The latest agreement brings the total of forestry land that Elders has sold or contracted for sale since announcing its withdrawal from forestry to 32,000ha.