New Forests, a Sydney-based fund manager, has acquired the plantation forestry assets previously held by AKD, Australia’s largest softwood sawmilling company, in a transaction that also includes German insurer and financial services group Allianz as a minority investor. The deal, executed through New Forests’ New Zealand Landscapes and Forestry Fund in partnership with Allianz, is among the largest forestry transactions of the year, although the financial terms have not been disclosed and the sale remains subject to regulatory approvals.

The AKD estate encompasses 57 radiata pine plantations spanning more than 13,000 hectares across Victoria, South Australia, and New South Wales. The portfolio includes properties in key forestry regions such as the Green Triangle area—situated between southeast South Australia and southwest Victoria—as well as sites in central Victoria near Ballarat and Otway, southern New South Wales, and northeast Victoria. These plantations contribute significantly to Australia’s timber supply, with AKD producing over one million cubic metres of timber products annually, representing approximately 20 to 25 percent of the nation’s output.

Despite divesting its plantation assets, AKD will retain ownership and operation of its separate sawmilling business. AKD’s chief executive, Shane Vicary, emphasized a continued partnership with New Forests, noting that long-term supply agreements for sawlogs and pulp logs will maintain the company’s connection to the forestry estate.

Mark Shelton, managing partner at New Forests, highlighted the underlying strength of forestry as an asset class, citing its long-term, low-volatility investment profile and appeal to institutional investors such as pension funds. Shelton pointed to robust fundamentals in the sector despite broader economic challenges, including rising interest rates and housing market dynamics. He also noted that New Forests remains active in expanding its portfolio of natural capital assets, having recently launched a $1 billion equity raise aimed at acquiring forestry and agriculture assets globally, with the potential to venture into carbon and biodiversity markets.

The acquisition builds on New Forests’ existing portfolio, which now totals approximately $10.6 billion in natural capital assets primarily concentrated in Australasia. The firm has previously raised nearly $600 million through its ANZLAFF vehicle from investors across the Asia-Pacific and Europe, reflecting strong investor interest in nature-based investment strategies amid global market volatility.

Financial advisory services for AKD in this transaction were provided by Resolute Advisory. The deal underscores ongoing consolidation and investor interest in Australia’s forestry sector, driven by demand for sustainable and resilient asset classes.