SYDNEY – 23 November 2016 – Australian-based fund manager New Forests today announced the launch of its third investment fund dedicated to Australian and New Zealand forestry investment, with more than AUD 660 million in capital commitments. The Australia New Zealand Forest Fund 3 (ANZFF3) will invest in a diversified portfolio of hardwood and softwood plantation assets in Australia and New Zealand. The fund mandate also allows for investment in processing or infrastructure facilities, such as sawmills, ports, and bioenergy facilities.
“Institutional investment has played an important part in building the forestry sector in Australia and New Zealand over the past few years,” commented New Forests’ CEO, David Brand. “As a long-term investor, New Forests’ goal is to create an environment where forestry can prosper and where we can jointly deliver strong and stable returns to our clients and positive outcomes for the communities where we operate.”
Mr Brand continued, “Forestry is also an increasingly important asset class as investors seek to decarbonise investment portfolios and play a part in the emerging bio-economy. High-quality timber plantations in the southern hemisphere and tropical regions will be central to the ability of the international forestry sector to grasp this opportunity.”
New Forests manages more then 2.5 billion of investments in Australia and New Zealand and has funds, assets under management, and committed capital of more than AUD 3.6 billion globally. The company’s investments and operations include more than 780,000 hectares of plantation forestry and land as well as the Timberlink wood processing, sales, and distribution business, the forest management business Forico, and the international timber marketing business New Forests Timber Products. ANZFF3 will be managed to reflect New Forests’ longstanding commitments to sustainable forest management, third-party forest certification, and responsible investment.
Mark Rogers, New Forests’ Managing Director for Australia and New Zealand, will have oversight of the fund’s investment program, leading a team of dedicated investment and forestry professionals in Sydney, Melbourne, and New Zealand. New Forests is the only large timberland fund manager headquartered in the Australia-New Zealand region, giving the company advantages in investment origination and transaction management, allowing for a more active approach to asset management, and providing efficient, reliable access to Asia-Pacific timber markets.
Mr Rogers said, “New Forests has demonstrated that we are a capable, disciplined buyer in this competitive market, and we’re focused on the long-term value add that strategic asset management can deliver. We continue to look not only for high-quality assets but also for the best investment partners, forest managers, and supply chain operators. These relationships are critical to ensuring we maximise value in both domestic and export wood fibre markets. With this additional funding from our clients we look forward to continuing to increase the role of certified Australian and New Zealand plantations in the expanding global bio-economy.”