New Forests extending $1.3 billion forestry fund

Friday 8 May 2020

International forestry investment manager New Forests has announced the extension of its flagship forestry fund, the Australia New Zealand Forest Fund (ANZFF). Originally launched in 2010 as a 10-year, closed-end fund, ANZFF was converted into an extended long-term vehicle by agreement of the institutional investors in the fund. The extension includes a series of 12-year renewals, commencing 1 July 2020.

New Forests’ Managing Director for Australia and New Zealand, Mark Rogers, explained, “Over the past several years, we have worked closely with our ANZFF clients to develop an approach that enables them to continue to hold high-quality forestry and forestry-related assets for the long term, benefiting from cash yield and attractive markets. The structure we have developed lets New Forests work on our investors’ behalf to drive value into the future.”

The ANZFF portfolio includes extensive, high-quality eucalyptus and pine plantations across Australia as well as the Timberlink wood products manufacturing and timber distribution business. With a mature asset base, New Forests anticipates that ANZFF will generate ongoing cash yield from timber harvest and wood products sales as well as preserving and creating long-term value through managing biological growth and land assets for strong, stable total returns.

Rogers added, “We are heartened by our clients’ shared commitment to holding this portfolio, especially against the backdrop of many institutions needing to find liquidity in the current market. The ANZFF portfolio is among the premier diversified forestry portfolios globally. The fund extension endorses the contribution of forestry assets to our clients’ investment portfolios.”

The ANZFF estate includes approximately 283,000 gross hectares of land area, with around 195,000 hectares net planted area, and approximately 20,000 hectares dedicated to conservation management. The portfolio generates approximately 4 million m3 of timber harvest each year and provides nearly 1,500 jobs.

Source: New Forests

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