One of Canada's largest pension funds, the Public Sector Pension Investment Board, is to buy a stake in the Kaingaroa Forest.
The board will buy a share from Harvard Management Company, the endowment fund of Harvard University, which will retain a 28.75% stake after completion of the transaction.
The deal remains subject to regulatory approval and other customary closing conditions.
As part of the agreement, the New Zealand Superannuation Fund has also agreed to purchase an additional small stake, taking its total shareholding to 41%.
The 178-thousand hectare forest estate in the central North Island is widely recognised as one of the world's premier softwood plantations.
The partners in Kaingaroa own the harvesting rights to the plantation while most of the land is owned by local Iwi.