Yesterday, New Forests, a global investment manager of nature-based real assets and natural capital strategies, announced its $A700 million ($NZ802.6m) Australia New Zealand Forest Fund 2 had signed agreements for the final asset dispositions with the sale of the two Otago forestry assets. The price was withheld.
Taieri Forests Ltd is one of the largest producers of softwood logs in the region, with 24,700ha of plantable area comprising 92% radiata pine and 8% Douglas fir.
Otago Estate Ltd, a large-scale freehold softwood land estate, spanned an area of 22,550ha, which included about 18,900ha of productive area which underpinned a significant proportion of the TFL forestry assets, a statement said.
Otago-Southland is New Zealand’s second-largest plantation and forestry region with 233,000ha of forest area, representing 43% of the South Island’s total forest area.
Since acquiring the assets in 2018, New Forests’ ANZFF2 had worked to deliver strong operational improvements, including increasing sales volumes, enhancing operational efficiencies, registering carbon projects and protecting conservation areas.
The fund also supported community programmes such as education for schools at Orokonui Ecosanctuary, the statement said.
Private Natural Capital at APG Asset Management Asia-Pacific senior portfolio manager Ben Avery said the investor looked forward to further contributing to responsible management of the two assets for the benefit of the forestry industry, local communities and the environment.
The transaction was subject to certain conditions being met and regulatory approval. — Allied Media
