Australian Sustainable Forestry Investors (ASFI) - a private wholesale investment fund managed by Mirvac's fund management subsidiary - leased more land to Timbercorp than any other single party. It owned about 20,500 of some 50,000 hectares the forestry company leased and used for plantations across Australia.

Timbercorp's 700 landlords, including farmers and other corporate owners, will soon be asked to grant a 90-day rent moratorium to Timbercorp's administrator as it investigates the viability of forestry and horticultural schemes.

ASFI's land holdings, which it bought from Timbercorp in 2004, are in Western Australia, Victoria and South Australia.

It is understood that Timbercorp paid about $4.6 million a year to rent the land, providing income for the fund.

According to Mirvac's latest property compendium, ASFI had no other assets apart from the 20,500 hectares it bought from Timbercorp last December.

Its assets, combined with the holdings of another Mirvac forestry fund owning almost 13,000 hectares in New Zealand, were valued at $140.7 million at the end of last year.

KordaMentha is preparing letters asking landlords, including the Mirvac fund, to grant a stay of rent. According to an affidavit lodged by the administrator Mark Korda last week, $9.6 million was needed to cover rent for all Timbercorp's forestry schemes for the three months to September 30. The "vast majority" of the leases were due at the end of June, and the responsible entity of the schemes, Timbercorp Securities, had no money, Mr Korda said.

KordaMentha has invoiced Timbercorp growers, who bought sub-leases over timber lots from Timbercorp as investments, for the rent and other expenses. According to Mr Korda's affidavit, fewer than a third had paid by June 4.

Mirvac declined to say yesterday what implications Timbercorp's collapse could have on the fund and its income, or whether the fund would consider KordaMentha's request for a moratorium.