Forestry Corporation: Housing Industry and State Forests

forestry corporation: The long-term lease of Forestry Corporation's 230,000 hectares of softwood plantations is expected to be one of the first assets off the block in the new year, according to The Guardian. The state forests produce about 14% of Australia's timber, including much of the supply for the housing industry. The second half of Ausgrid, the second half of West Connex and some water assets are also in the government's sights. The transaction, expected to raise 1bn, is likely to be announced early in the new year and will involve a long-term lease of land and the right to grow timber, rather than the sale of land. The sale will be controversial in regional areas such as Bathurst, Oberon, Bega, Tumut and the north-west, where large softwood plantations are important employers. The bank and financial services company UBS has undertaken a scoping study in the past three months while the accountancy firm KPMG has worked on the tax implications and the law firm Minter Ellison on the legal structures. (news.financializer.com). As reported in the news.