December 5, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

New Forests, a global investment manager of nature-based real asset and natural capital strategies, announced the launch of its new Australia New Zealand Landscapes and Forestry fund (ANZLAFF) with the goal of raising A$600 million (US$404.73 million) over the next two-to-three years. 

Headquartered in Sydney since its inception in 2005, New Forests is a certified B corporation with operations in Australia, New Zealand, Southeast Asia, Africa, and the U.S. that offers high-impact strategies in sustainable forestry, natural capital, agriculture, and their related sectors.

The firm manages a diversified portfolio of sustainable timber plantations and conservation areas, carbon and conservation finance projects, agriculture, timber processing, and infrastructure with AUM of AUD$9.95 billion (US$6.85 billion) spanning 1.1 million hectares (2.9 million acres) as of June 30, 2022.

Just little more than two months ago, New Forests  expanded through the formation of a new ag investment business division called New Agriculture; a global vehicle through which to build a portfolio of agricultural assets beginning in Australia and New Zealand, and eventually expanding into developed markets such as the U.S. and Europe, GAI News was told.

Anchoring New Agriculture is the management of Lawson Grains, a 100,000-hectare aggregation acquired by New Forests and Alberta Investment Management Company (AIMCo) last year for $600 million from Macquarie Asset Management. In time, the New Agriculture team told GAI News, this new platform will be of a similar scale to New Forests’ existing forestry funds.

Today, GAI News would like to share another development from New Forests – the launch of what will be its fourth round Australia and New Zealand landscapes and forestry strategy, building upon the experience gained and successes achieved through its previous strategies, which collectively manage A$4.67 billion (US$3.15 billion). 

“The risk of climate change is driving strategic asset allocation decisions of the world’s largest investors. We believe that investing in the land and forestry sectors is crucial in leading the transition to a sustainable future,” said Mark Rogers, senior managing director, Australia, New Zealand, and the United States, New Forest.

ANZLAFF intends to provide institutional investors with access to integrated forest, land, and agriculture markets in Australia and New Zealand, targeting investments into core forestry plantations in selected regions. These investments will exist alongside processing and logistics company investments, and some exposure to primary agriculture commodities. Additionally, the fund aims to champion climate mitigation through opportunities in carbon sequestration and the reduction of emissions.

Rogers noted, “In this latest strategy, we will seek to maximize the value of landscape investments by positioning investors to benefit from the alignment of sustainable productive land management, the rise of climate finance, exposure to decarbonization outcomes, and the circular bioeconomy.”

He continued, “Australia and New Zealand are well-established destinations for institutional investors seeking to build a diversified core forestry, land-based investment portfolio, in stable, low sovereign risk locations with close access to export markets across Asia.”

Underlying New Forests’ investment approach is its Responsible Investment Framework – guiding principles that work to ensure that investments are aligned with the interests of the communities in which New Forests invests and with the needs of its clients. These initiatives include: delivering certified sustainable forestry; sustainable agriculture; increased natural climate solutions by reducing carbon emissions and increasing carbon sequestration; supporting the bioeconomy where renewable wood fiber replaces fossils-based materials; and reconciliation action plans.

“Beyond the sustainable management of assets, ANZLAFF is designed to provide investors with an opportunity to invest in natural climate solutions at scale, not only in the monetization of carbon sequestration opportunities but also in the emerging circular bioeconomy,” said Jo Saleeba, head of sustainability, New Forests. “Wood fiber is projected over time to replace many higher carbon products currently created from petrochemical plastic, steel and concrete.”

~ 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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