SHARES in Launceston timber company Gunns Ltd staged a recovery today as it announced the successful sale of 75 per cent of its Victorian and SA softwood plantations.The $175.2 million deal will see Gunns buy the timber and retain ownership of the land which it acquired as part of its Auspine purchase in February.Gunns shares were trading around 70 cents after hitting 80 cents during trading. Yesterday they hit a new low of 63 cents.In a statement to the Australian Stock Exchange, the company said it had entered into an agreement with GMO Renewable Resources, an international timber investment management organisation, for about 33,000 ha of radiata pine plantations in the Green Triangle region of SA and Victoria. ``This estate represents approximately 75 per cent of the managed softwood plantations owned by Auspine,'' the company said.``Gross proceeds from the transaction will amount to approximately $175.2 million which reflects full book value of the forest asset.'' Gunns said the proceeds of the sale would be used to reduce bank debt.The company said the sale would not affect its timber processing operations and the deal involved a single plantation rotation.Gunns has already used more than $334 million raised in an institutional share issues to repay debt including the $225 million extended working capital facility it used to fund the Auspine purchase.It has now reduced overall debt to $740 million, down from $1.05 billion, and today's reduction will put its gearing at under 50 per cent.Gunns manages more than 200,000 ha of forestry plantations consisting of about 150,000 ha of hardwood in Tasmania and about 50,000 ha of softwood in SA and Victoria. ``The existing estate is now at a level which provides a sustainable base for planned company operations, including the Bell Bay pulp mill development, into the future,'' the company said.Today's announcement improves the company's prospects of getting finance for its proposed $2.2 billion Bell Bay project.