China Investment Corporation Narrows in on BC Timberlands

The China Investment Corporation (CIC) is drawing closer to buying a significant stake in Island Timberlands LP. Brookfield Asset Management is the parent company of Island Timberlands. Island Timberlands controls around 258,000 hectares of timberland on Vancouver Island and the surrounding area. Island Timberlands harvests around 1.8 million cubic meters per annum, majority being exported to the Pacific Northwest USA and Asia.

Asia has robust demand for Douglas-fir and whitewood species. This demand has led Chinese firms to invest in the forestry sector in Western Canada. For example, in April 2011, ROC Holdings Ltd., a private Canadian company owned by a parent Chinese firm, purchased West Fraser Timber’s Skeena Sawmills division.

High quality real assets are in demand by sovereign wealth funds and large public funds.

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