By Gerelyn Terzo, Global AgInvesting Media
After a decade of managing and enhancing forestry assets across Australia and New Zealand, New Forests is concluding its A$700 million Australia New Zealand Forest Fund 2 (ANZFF2) with a successful exit. The investment manager, specializing in nature-based real assets, has secured agreements for the fund’s final dispositions, including the sale of two New Zealand forestry estates to APG Asset Management, a European pension powerhouse known for its extensive portfolio. This handover reflects the fund’s sustained approach to asset stewardship, now passing the torch to an established institution equipped to continue that oversight.
Under the agreement, APG will pick up a 38 percent stake in Taieri Forests Limited (TFL), a major softwood player in New Zealand’s Otago region. TFL manages about 24,700 hectares of plantable land, comprised largely to radiata pine with a smaller Douglas-fir component. It is also strategically located near local sawmills as well as road and rail links to export ports, supporting both domestic processors and overseas buyers.
The package also includes full ownership of the Otago Estate Limited (OEL) assets, another sizeable softwood estate in the same region. OEL covers roughly 22,550 hectares, with close to 19,000 hectares in productive use, and forms much of the land base underpinning TFL’s forestry operations, adding scale and continuity to the combined Otago platform.
New Forests’ Fund 2 has owned these assets for the better part of a decade, spanning years of active management. During this time, the fund focused on key operational enhancements, such as ramping up sales volumes, improving efficiencies, setting up carbon projects and safeguarding high-conservation zones. It also backed community efforts, including school education programs at the Orokonui Ecosanctuary.
New Forests Managing Director, Australia and New Zealand and Global Head of Investments David Shelton commented, “We are extremely pleased to have reached the end of ANZFF2’s 10-year fund life, where we have been able to deliver strong double-digit returns for our investors, and demonstrate long term sustainability outcomes…Long-term ownership of these assets supports responsible forest management, biodiversity conservation, and carbon sequestration for the future of New Zealand. We are confident the new owners will continue this investment pathway and enjoy attractive returns on their investment.”
Shelton also pointed out that forestry plays an outsized role in New Zealand’s economy, contributing about 1.3 percent of GDP while supporting jobs in rural and regional communities. The sector supplies coveted timber for both local use and export markets, and well managed forests also serve as an important tool for climate mitigation.
Ben Avery, Senior Portfolio Manager, Private Natural Capital at APG Asset Management, Asia-Pacific said, “We are pleased to invest in these high-quality forestry assets in New Zealand, which offer both strong long-term returns and meaningful environmental benefits. Forestry continues to play a critical role in decarbonization and biodiversity conservation, and this transaction reflects our commitment to natural capital investments that deliver sustainable outcomes for our client, ABP. We look forward to further contributing to responsible management of these assets for the benefit of the forestry industry, local communities and the environment.”
New Forests is a Sydney, Australia-based investment manager focused on nature-based real assets, overseeing about A$12.15 billion across more than 4.4 million hectares of timber plantations, conservation areas, carbon projects, agriculture and infrastructure. The firm’s investment strategies touch Australia, New Zealand, Southeast Asia, Africa, Europe and the U.S., with an emphasis on sustainable forestry and natural capital.
As the largest pension provider in the Netherlands, APG oversees approximately €590 billion in assets for 4.6 million participants. With around 4,000 employees across Europe, the U.S. and Asia, it provides asset management and pension services to funds covering sectors such as education, government, construction and healthcare and now agriculture.
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