The Pension Protection Fund (PPF), alongside Australian superannuation fund UniSuper and the Netherlands' APG Asset Management, has acquired Tasmanian forest management company Forico and its plantation forestry estate.

Under the agreement, the three investors will each own 33 per cent of Forico and the 170,000-hectare forestry estate as a direct investment.

APG Asset management made the investment on behalf of its Dutch pension fund client ABP.

The acquisition was made from a New Forests managed fund, with New Forest to be retained to provide investment management services.

Forcico is Tasmania’s largest private forest management company and its forestry estate is one of Australia’s largest plantation hardwood estates by productive area.

It consists of vertically integrated assets and operations spanning approximately 90,000 hectares of productive plantation forest.

Foreco also owns key infrastructure along the supply chain consisting of two wood processing mills, a seedling nursery, fibre technology laboratory, and port access via a freehold facility at Long Reach, Tasmania.

The firm’s approach has led to the estate sequestering more than 123 million tonnes of CO2e, with the current plantation rotation expected to remove a further 24.7 million tonnes from the atmosphere before it is harvested and replanted.

“Forestry is an important asset class for the PPF and this direct investment further underpins our commitment to investing responsibly,” said PPF head of infrastructure, timberland & farmland, Alex Leonard.

“Our focus on using our funds in these longer term productive investments, in both UK and global markets, is important for sustainable growth and productivity.

“We are particularly attracted to the strong growth prospects for hardwood fibre, and Forico’s position at the forefront of advances in silviculture, the circular bioeconomy and natural capital.

“Adding this high-quality, well-managed asset to our existing timberland portfolio benefits those who rely on us through strong investment returns while delivering tangible, long-term environmental benefits. Everyone wins.”

Forico chief executive officer, Evangelista Albertini, added: “Attracting and retaining long-term investment partners in UniSuper, PPF and APG helps to secure a prosperous future for Forico and the forestry industry. It will allow us to continue to innovate, adopt market leading practices, and look at ways to add value to the natural environment.”

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