The source confirmed an earlier New Zealand Herald newspaper report that the deal includes 250,000 hectares (ha) of land, 100,000 ha of which is freehold, although Carter Holt Harvey was expected to retain 36,000 ha, worth as much as NZ$252 million, which had previously been lined up for sale.

The newspaper said the estate was worth about NZ$1.55 billion, though the source said it was too hard to evaluate the sale price at this stage.

Carter Holt sold 94,600 ha of forests last July for NZ$441 million. The sale was about one third of the company's total New Zealand estate and regarded as non-strategic to its operations.

The sale of the remaining estate would be one of the biggest ever forest disposals in New Zealand.

The two biggest previously were Tenon's sale of a 100,000 hectare estate for NZ$725 million and the 165,000 ha estate of the former Central North Island Forest partnership for NZ$956 million.

Rank had sent an information package to potential buyers, expected to include a wide range of specialist forestry investors and private equity companies.

Potential bidders were tipped to include timber management organisations such as US-based Hancock Timber Resources and GMO Renewable Resources, and private equity groups.

Analysts had estimated the break-up value of Carter Holt at NZ$3.6 billion to NZ$4.4 billion, before Hart purchased it.