First Investment for New Forests Australia New Zealand Forest Fund 2
Sydney, 24 March 2014:Â New Forests Australia New Zealand Forest Fund 2 (â€śANZFF2â€ť) has completed its
first acquisition, a 21,000 hectare forestry estate. The properties were sold by the Australian Sustainable
Forestry Investors Fund (ASFI).
New Forests announced the final close of ANZFF2 on 17 March with AU$707 million in commitments.
ANZFF2 is a successor fund to New Forestsâ€™ first regional timberland fund, which completed its acquisitions
program in 2013. New Forests currently manages over AU$1.5 billion in plantation and forest sector assets
The estate is distributed across some of the countryâ€™s prime forestry regions, with 61 properties located in
the productive Green Triangle border region of Victoria and South Australia and 7 in southwest Western
New Forestsâ€™ CEO David Brand explained, â€śThis purchase is an ideal initial transaction for our new fund. It
provides immediate cash yield from land rental and gives the fund entry into two key timberland regions of
Australia,â€ť said Mr Brand. About two-thirds of the estate is under a single rotation lease to a third-party
forestry company managing Eucalyptus globulus (blue gum) plantations. The other third of the land has
already come off lease as a mix of coppice crop and second rotation plantation. The estate will be retained
as E. globulus plantations or in some cases converted to pine plantation or returned to agriculture after
New Forests seeks to generate strong returns as export markets for Australian woodchip recover.
Mr Brand explained, â€śWe believe that hardwood woodchip demand in Asia will increase by 20-25% in the
next two years. While Japanese demand is relatively flat, major new pulp mills are being built in coastal
China, and India is also now importing hardwood woodchip. With the Australian dollar moderating over the
past year, Australian hardwood woodchip exports are recovering and could exceed 4 million tonnes in 2014.
This current acquisition adds to the hardwood plantation estate already managed by New Forests, which will
ultimately supply over 2 million tonnes of hardwood woodchip per annum.â€ť
About New Forests —
New Forests (www.newforests.com.au) manages investments in sustainable forestry and associated
environmental markets for institutional and other qualified wholesale investors. New Forests executes three
investment strategies that provide clients with diversity and choice around risk-adjusted returns, geography,
and market exposure: sustainable timberland investment in Australia and New Zealand; forestry investment
in high-growth markets of the Asia Pacific region; and conservation forestry and environmental markets
investment in the United States. The company has offices in Sydney, Singapore, and San Francisco and
currently manages over AU$2.3 billion in funds and assets and over 450,000 hectares of land and forests in
Australia, the United States, and Asia.