This was the first part of the company’s plan to divest its lower value forests, which produce around half CHH’s wood output, but make up only one quarter of total forest book value.

The consortium is made up of Rayonier Inc and RREEF Infrastructure, the global infrastructure arm of Deutsche Asset Management.

The sale was conditional on approval of the Overseas Investment Commission and other normal commercial conditions, but the conditions precedent have now been satisfied and the sale to the consortium is now unconditional.

The deal will make Rayonier the third largest forest owner in New Zealand, where it already owns 48,000ha, which it will sell to the consortium.

After the sale, which is due for completion in early October, CHH will still own around 220,000ha of forests.

However, market rumours indicate new majority shareholders, Rank Group, will sell off the rest of CHH’s forests due to strong forest demand from overseas investors.

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