Brookfield Asset Management has received equity commitments totalling US$1 billion for its timberlands fund.
Commitments to the Brookfield Timberlands Fund V exceeded the original $750 million fundraising target, reflecting strong investor demand. Brookfield committed $250 million to the fund.
Investors include a diverse group of institutional investors, including sovereign wealth funds, public and private pension plans and insurers.
“We believe this fund will allow our investors to invest in large-scale, high-quality timberland assets on a value basis,” says Reid Carter, managing partner of Brookfield Timberlands. “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.”
The global fund will invest in timberlands—primarily in the United States, Brazil and Australia—and may also pursue opportunities in Canada, Chile, Uruguay and New Zealand.
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