July 15, 2024

By Gerelyn Terzo, Global AgInvesting Media

Montreal-based Fiera Comox Partners, an affiliate of Fiera Capital Corporation with $3.3 billion-plus in assets under management, has entered into a joint venture with Ngāi Tahu Holdings for the development of a forestry estate on the West Coast of New Zealand, South Island. According to the terms of the agreement, Ngāi Tahu is selling a 35-year cutting right of its West Coast Plantations to the new JV.

Fiera Comox will take a majority 85 percent interest in the partnership while New Zealand-based investor Ngāi Tahu retains a 15 percent interest, which coupled with a director seat on the board allows it to maintain oversight of the operations. Meanwhile, the whenua, or land, is excluded from the sale as the deal is limited to a “single rotation of cutting rights, whereafter the forests return fully to Ngāi Tahu ownership.” The New Zealand holding company is also quick to point out that an “ongoing log supply to West Coast sawmills” remains intact.

The estate, which spans 45,500 hectares, or 110,000 acres, comprises mostly radiata pine and Douglas fir plantation forests, which are sustainably produced amid a Forest Stewardship Council (FSC) certification designed to protect New Zealand’s native forests.

The investment represents the maiden allocation for Fiera Comox’s Global Sustainable Timberland Strategy, which targets high-quality private forests worldwide. Together the Timberland Strategy team, led by partner and CEO Antoine Bisson-McLernon, has purchased a combined 2 million-plus acres of timberland across deals worth several billion dollars. Additionally, they boast operational experience including the oversight of a major private timberland company that manages 1.5 million acres of North America forestry.

For its part, Ngāi Tahu Holdings is an investment firm of the Ngāi Tahu tribe known for their “connection to the natural environment”. With centuries of discovery behind them, Ngāi Tahu represents New Zealand’s biggest single tribal territory, with 55,000 people identifying as Ngāi Tahu.

Both parties expect that the endeavor will be “positive” for the West Coast region amid a challenging economic environment. Approximately 225,000 cubic meters of softwoods, including pinus radiata, are harvested annually from West Coast plantations, the trees from which are then sold to domestic and export markets. Ngāi Tahu CEO Todd Moyle called the pre-sale of the firm’s trees a “pragmatic decision,” one that would free up capital so it could maintain its commitment to the region.

Fiera Comox Partner, Vice Chair, Head of Natural Capital Jeff Zweig said the firm’s “boots on the ground approach” would lead to more sustainable outcomes and value for investors.

Additionally, Fiera Comox Partner and CEO Antoine Bisson-McLernon stated: “We are delighted to have the opportunity to partner with Ngāi Tahu in one of the most attractive and globally competitive softwood producing regions in the world. Our team has had significant success investing and creating partnerships in New Zealand, and we look forward to working with our partners at Ngāi Tahu in generating long-term sustainable value for the joint venture, West Coast communities, and the Ngāi Tahu people in recognition of their deep connection to the land.”

Meanwhile, Ngāi Tahu’s Moyle said: “We’re looking forward to building a successful long-term relationship with Fiera Comox, which has an established track record of working with Indigenous groups in both New Zealand and Canada.”

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