Sydney-based New Forests, a global investment manager of nature-based real assets, has completed the final asset dispositions of its $700 million Australia New Zealand Forest Fund 2 (ANZFF2).
The sale involves two New Zealand forestry assets, transferred to APG Asset Management, Europe’s largest pension investor.
The transaction includes a 38 per cent interest in Taieri Forests Ltd (TFL), one of the largest softwood producers in the Otago region.
TFL has 24,700 hectares of plantable area, comprising 92 per cent radiata pine and 8 per cent Douglas-fir.
Its proximity to local sawmills provides strong domestic demand, while established road, port and rail links support export sales.
APG will also acquire 100 per cent of the assets of Otago Estate Ltd (OEL), a freehold softwood estate spanning 22,550 hectares.
OEL includes 18,900 hectares of productive area, underpinning a significant proportion of the TFL forestry assets.
Together, the estates sit within the Otago-Southland region, New Zealand’s second largest plantation hub, with 233,000 hectares representing 43 per cent of the South Island’s total forest area.
Since acquiring the assets in 2018, ANZFF2 has driven operational improvements, including higher sales volumes, efficiency gains, the registration of carbon projects, and the protection of high conservation areas.
The fund also supported community programs such as school education initiatives at the Orokonui Ecosanctuary.
David Shelton, managing director for Australia and New Zealand and global head of investments at New Forests, said the sale marked the conclusion of ANZFF2’s 10-year fund life.
“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,” he said.
Shelton noted forestry’s importance to the New Zealand economy, contributing 1.3 per cent of GDP, while also serving as a key employer, producer of quality wood for domestic and export markets, and an effective means of mitigating climate change.
“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,” he added.
Ben Avery, senior portfolio manager for private natural capital at APG Asset Management, Asia-Pacific, said the acquisition aligned with APG’s commitment to sustainable investment.
“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 decarbonisation and biodiversity conservation, and this transaction reflects our commitment to natural capital investments that deliver sustainable outcomes for our client, ABP,” Avery said.
“We look forward to further contributing to the responsible management of these assets for the benefit of the forestry industry, local communities and the environment.”
Wood Central understands that the transaction now remains subject to conditions and regulatory approval.
