Canadian firm Brookfield Asset Management has gathered $1bn for its latest timberlands fund, topping its initial target by $250m.
Brookfield Timberlands Fund V will target timberlands, primarily in the US, Brazil and Australia and may also pursue opportunities in Canada, Chile, Uruguay and New Zealand, the firm said in a statement.
The LPs that have backed the fund include sovereign wealth funds, public and private pension plans and insurers, which provided $750m in addition to a $250m investment from Brookfield.
Brookfield Timberlands managing partner Reid Carter said, “We believe this Fund will allow our investors to invest in large-scale, high quality timberland assets on a value basis.
“The fund will leverage the operating skills of Brookfield’s seasoned team of timberland professionals and actively manage assets to seek to achieve strong risk-adjusted total returns over the long-term.
“The global timber supply and demand outlook is very favourable for timberland owners, and we believe this sustainable, renewable resource offers significant benefits to institutional investors.”
Brookfield recently from Longview Timber and Longview Fibre Paper and Packaging for a combined $3.675 billion, making a return of $850m.
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