Image

Two pension funds acquire NZ forestry asset

27 October 2021

Two European pension funds, APG Asset Management (APG) on behalf of its Dutch pension fund client ABP, and UK’s Pension Protection Fund (PPF), have agreed to purchase Sinotrans New Zealand Limited’s (Sinotrans NZ) shareholding in Wenita Forest Products Limited (Wenita).

Wenita is the largest producer of timber in Otago, New Zealand, across almost 30,000 hectares of sustainably managed forests. With a history spanning three decades, Wenita is widely recognised as one of the premier softwood plantation assets in New Zealand.

Under the agreement, the two investors will acquire the 62% share from Sinotrans NZ. A New Forests-managed fund, the Australia New Zealand Forest Fund 2 (ANZFF2), has owned the other 38% shareholding since 2018. The agreement will bring total ownership of Wenita under New Forests’ management.

Mark Rogers, Senior Managing Director, Australia, New Zealand and US, at New Forests said: “Wenita is a well-managed, mature asset of scale with strong cash flows, and in a region with domestic distribution and access to export markets. New Forests’ continued involvement with Wenita’s management team will help identify new ways to add value to the business including implementation of our sustainable landscape investment approach. Having the support of investment partners, who have invested with us for many years, means our interests are strongly aligned.”

Hans-Martin Aerts, Head of Infrastructure & Natural Resources at APG Asset Management Asia, said: “We are pleased to partner with PPF and New Forests to acquire a controlling interest in Wenita. This investment is a great fit with our sustainability strategy and will contribute to ABP’s commitment to the UN Sustainable Development Goals. Wenita is a large-scale sustainably managed forest company with all its plantations being certified by the Forest Stewardship Council (FSC). We look forward to working with our partners to ensure a long-term, stable and sustainable investment return for our clients.”

Lea Dubourg-Hrachovec, Head of Infrastructure, Timberland and Farmland at the Pension Protection Fund said: “Wenita is the fourth addition to our growing program of direct investments into sustainable, FSC certified forestry assets globally. What attracted us to Wenita is its long-established operational track record, mature, high quality forest portfolio with a close proximity to the deep-sea port of Chalmers, which makes it a very highly prized forestry asset in New Zealand. We believe Wenita has a great long-term potential and we’re very excited to be part of its future alongside our partners APG and New Forests.”

There will be no significant changes to Wenita’s employees following the acquisition. All commercial terms are confidential.

Read More
Image

Mapping Gisborne’s worst eroding land

Gisborne land adaptation shifts have received positive feedback from both the Eastland Wood Council and an environmental group. The region’s farmers and forestry companies might end up with designated land they can’t operate on under new council plans. Council chief ...
Read more
Image

Canadian developed Hydrogen-diesel system secured

HVMS, a leading provider in the decarbonisation of transportation, has announced the establishment of its partnership with Canadian company Diesel Tech Industries, to establish installation facilities for the Guardian Hydrogen Diesel System. This initiative marks a significant step towards advancing sustainable ...
Read more
Image

Australian timber framing industry gets a boost

Forest and Wood Products Australia (FWPA) is set to spearhead an initiative highlighting the advantages of timber framing in construction, promising a significant boost to its promotion efforts. First established in the Australian Forest Products Association’s Softwood Manufacturing Chamber, and funded by ...
Read more
Image

Who’s transforming our economy with renewable resources?

The opportunities for converting forestry fibre to renewable resources to replace fossil fuel based products are growing every year. The adoption of bioenergy and related technologies / products in New Zealand and internationally, sourced from forestry and wood products companies ...
Read more
Image

New trade agreement a boost for NZ wood processors

Increased export opportunities through the removal of tariffs for 41 wood products included within the ‘Agreement on Climate Change, Trade and Sustainability’ is welcomed by New Zealand’s wood processing and manufacturing industry. ‘Under brand New Zealand we have a leading story to ...
Read more
Image

Södra to become the largest producer of kraft lignin in the world

As a step in the strategy of getting more out of every tree, Södra is now establishing a new business to become a world leader in the production of kraft lignin. Södra’s production facility will be the first commercial facility ...
Read more
Image

NZ National Exotic Forest Description survey – data needed

On 1 April 2024, the Ministry for Primary Industries (MPI) sent out the 2024 National Exotic Forest Description (NEFD) survey. The survey is critical for informing wood availability forecasts, which underpin infrastructure and wood processing investment decisions, as well as contributing to a ...
Read more
Image

Unlimited potential of virtual reality for forest thinning

How a virtual reality (VR) and gaming engine could add another tool to the forestry training kit. A future where new foresters are trained to thin trees from the safety of a virtual reality forest before more advanced real-world training could be ...
Read more
Image

Growing the potential of NZ’s forestry sector in partnership

Forestry Minister, Todd McClay, has announced the start of the Government’s plan to restore certainty and confidence in the forestry and wood processing sector. “This government will drive investment to unlock the industry’s economic potential for growth,” Mr McClay says. ...
Read more