Australia New Zealand Forest Fund 2 (ANZFF2), managed by forestry investment manager New Forests, has acquired a 38 percent shareholding in Wenita Forest Products and full ownership of the Otago Land Co., which holds 22,500 hectares of freehold land in New Zealand on which Wenita operates via forestry rights.
New Forests is acquiring the assets from The Rohatyn Group (TRG), a specialized asset management firm with expertise in emerging markets and real assets, which first purchased the Wenita shareholding in 2005 in a joint venture with Chinese logistics company Sinotrans and 100 percent of the OLC land in 2006.
The transaction marks the successful completion and full investment of the A$707 million ($526 million) ANZFF2 fund.
“The Wenita transaction is a milestone for our ANZFF series of forestry funds as we complete full investment of ANZFF2, securing significant scale in both target countries of Australia and New Zealand,” said Mark Rogers, managing director for New Forests’ Australia-New Zealand business. “New Forests has been selective and disciplined in creating the ANZFF2 portfolio. The Wenita acquisition complements the fund’s hardwood and softwood plantation exposure in Australia and brings our New Zealand estate to more than 48,000 hectares in total.”
Wenita is the largest softwood timber producer in New Zealand’s Otago region with a 29,200-hectare estate growing primarily radiata pine. Wenita maintains Forest Stewardship Council® certification of responsible forest management and has high standards for care of the environment, worker safety, and the quality of its forests and timber.
New Forests’ Australia New Zealand focused investment funds represent more than A$2.75 billion ($2.05 billion) of forestry and processing assets. New Forests is currently investing its Australia New Zealand Forest Fund 3, which has capital commitments of A$873 million ($652 million) from a combination of pension funds and superannuation funds.
