March 7, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Within weeks of nature-based real asset and natural capital strategies manager New Forests making its first investment through its Tropical Asia Forest Fund 2 (TAFF2), New Forests has now made its final capital investment for its A$866 Australia New Zealand Forest Fund 3 (ANZFF3).

Marking its final deployment, New Forests has acquired Otiwhiti Farm Forests, a 1,246-hectare estate through a negotiation led by Agotahi Agribusiness managing director Jeremy Keating and colleague Wyatt Johnston on behalf of Otiwhiti Limited. 

“While we were always confident that we had the right investor on board with a very strong business case, the process turned out to be somewhat protracted given the level of scrutiny these transactions rightly receive and the change in government,” said Keating. “Despite delays, we are delighted to have played our part to finally secure an excellent outcome for all parties.”

Part of the Otiwhiti Station in New Zealand’s Turakina Valley, the estate had been subdivided by the vendor Otiwhiti Limited Partnership, which will continue to provide a license to Otiwhiti Land Based Training School to operate its agricultural education ventures on the remaining unsold land of the property. 

This subdivision and sale of the Otiwhiti Farm Forest followed a strategic land use review that concluded that the highly productive western end of the farm offered the best potential to continue supporting the training school, which has been in operations since 2007. 

Some of New Forests’ initial plans for partnering with the school include contributing to capital project upgrade and communications infrastructure, the installation of a rooftop solar system to improve operational resilience, and funding an annual scholarship. 

With more than A$11 billion in AUM covering 1.3 million hectares of land in Australia, New Zealand, the U.S., Southeast Asia, and Africa, New Forests is one of the largest forestry investment managers in the world. And this final deal for ANZFF3 aligns with its strong focus on sustainability, investing for a climate-positive future, and contributing to the prosperity of the communities in which it operates.

“We look forward to working with New Forests to continue providing significant benefits to the local community, and nationally, in the agricultural sector,” said Charles Duncan, managing director, Otiwhiti School of Agriculture.

“We will be identifying potential positives for both organizations as we build and strengthen our relationship. It’s exciting to be embarking on this new chapter alongside New Forests as the school continues to enhance its offering for young people looking to forge careers in agriculture.”

While cooperating with this training school by providing enhanced rural education opportunities to its students, New Forests intends to establish and manage production forests on this newly acquired asset. 

“We view New Zealand as a positive investment destination where the future harvest is likely to continue to benefit the country’s broader forestry and wood processing industry,” said Dan Bridgman, director of investments, Australia and New Zealand, New Forests.

“What we really like about the Otiwhiti opportunity is being able to partner with Otiwhiti Land Based Training School to assist in their delivery of positive educational opportunities into the future.”

Four hundred and ninety-nine hectares of Otiwhiti Farm Forest has already been planted under a Crown forestry right, which along with several successful neighboring forests, proves the land suitable for forestry, according to Joe Duncan, director of Otiwhiti Limited Partnership. 

“Optimizing land use is an ongoing part of any farming enterprise,” noted Duncan. “With the Otiwhiti Farm Forest portion of the station identified as ideally suited to forestry, we are very pleased to have secured a win-win outcome.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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