New Forests, an investment management firm specialising in timberland and associated eco products, has closed the largest timberland fund in Australia this year on the back of major restructuring of forestry investment in the region in 2010.
New Forests’ AUD500m Australia New Zealand Forest Fund will invest in a diversified portfolio of timberland properties and forestry-related investments in Australia and New Zealand backed by European, Australian and North American institutional investors
New Forests’ managing director says: “Now is the right time for investors to be weighting toward the timberland asset class because of its low volatility and positive correlation to inflation. Australia and New Zealand’s timberland sectors are restructuring…creating a once-in-a-generation change of ownership…which may be worth AUD3bn to AUD4bn.”
New Forests will also work to create upside from environmental markets, such as carbon and water, and will manage assets on an environmentally and socially sustainable basis.
