Manulife Investment Management Acquires Vast Timberlands in Australia

On September 30, 2025, Manulife Investment Management (Manulife IM), a prominent entity within the realm of asset management, revealed the successful acquisition of an impressive 18,100 acres of timberland located in New South Wales, Australia, designed for the Manulife Forest Climate Fund. This substantial investment marks a significant milestone as it is the fund's first international timberland acquisition.

The newly acquired timberland comprises four distinct properties situated in the picturesque Murray Valley region, nestled between Albury and Tumbarumba. Notably, over 11,900 acres of these lands consist of thriving radiata pine plantations, emphasizing the investment's focus on sustainability. Furthermore, the properties are linked to two certified forest carbon projects under Australia's Carbon Credit Unit program, reinforcing Manulife IM's commitment to environmental responsibility and sustainable practices.

This acquisition not only enhances Manulife IM's holdings but also expands the total acreage of timberland it manages in Australia to more than 1.36 million acres, showcasing the company's dedication to growing its presence in diverse global markets. The timberland has been acquired from New Forests, which held the assets for a decade, representing part of their strategic divestment from the Australian New Zealand Forestry Fund 2 (ANZFF2).

According to Tom Sarno, the global head of timberland investments at Manulife IM, the company brings a wealth of experience, with 27 years dedicated to managing timberland investments in Australia for its clients. Sarno expresses enthusiasm for this acquisition, highlighting the favorable conditions for the growth of mature and young radiata pine plantations that the properties offer. Additionally, the location's proximity to established timber markets and leading Australian forest product manufacturers positions the investment for future success.

Manulife IM oversees approximately 5.6 million acres of timberland across the United States, Canada, New Zealand, Australia, Brazil, and Chile, boasting an Asset Under Management (AUM) of $11.7 billion. This is part of a broader investment strategy that encompasses diverse asset classes, including agriculture, infrastructure, private equity, and real estate, significantly contributing to the company's comprehensive private markets approach.

The strategic acquisition of these timberlands aligns with the global trend towards responsible investment and sustainability, demonstrating how major players in the investment sector, like Manulife IM, are taking decisive steps toward addressing climate change through sustainable forest management. As the demand for timber and forest products continues to rise, it is paramount for investment managers to generate both economic returns and ecological benefits.

In the coming years, Manulife Investment Management aims to leverage its expertise in forest management to capitalize on timber production while simultaneously realizing the natural capital value of the acquired land. The focus will be on generating sustainable revenue streams through timber and forest carbon credits, illustrating a balanced approach to investment that prioritizes both profitability and environmental stewardship.

As the landscape of timberland investment evolves, such moves are crucial for maintaining a competitive edge while fostering a sustainable future. Stakeholders in the investment community will closely watch how Manulife IM harnesses this expansive new asset to drive positive outcomes in both the financial and environmental sectors, setting a precedent for future investments in timberland assets worldwide.

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