US forestry group considers $500m offer for CHH plantations

American forest manager Campbell Group may bid US$370 million ($498.2 million) for Carter Holt Harvey's forestry assets.

Joe Shore, acquisitions manager at the Oregon-based company which manages US$1.4 billion of US forests, said a bid for what would be 5 per cent of New Zealand's plantation trees was being considered.

The 95,000 hectares of trees being sold by Carter Holt are spread across the country in 45 forests. The largest single estate being sold by Carter Holt is 30,000 hectares in the South Island.

"That's probably at the lower end of what we would want," Shore said. "You've got to have some economies of scale if you're going to establish yourself in an area."

Campbell Group manages 354,000 hectares of trees in North America and returned 11.9 per cent last year after fees. It has focused on institutional clients since 1986.

About 15 per cent of New Zealand's forests are owned by funds such as Harvard University and Hancock Timber Resource Group.

CHH is selling a third of its trees to focus on board, paper and packaging businesses. It said it had received expressions of interest from more than 40 companies.

- BLOOMBERG