The New Forests Australia New Zealand Forest Funds 2 (ANZFF2) will be offered to large offshore and onshore pension funds looking for exposure to plantation forest and forestry land in Australia and New Zealand.
Speaking to InvestorDaily, TRU general manager for corporate client services, Andrew Cannane, said while forestry funds have suffered from reputation issues since the global financial crisis, the New Forests investment strategy is unique.
“Their strategy is different in that they are focused more on the land than the actual crop, plus they’ve got a strong track record, so I think they are the exception,” Mr Cannane said. “I think… the market is certainly tainted by that tough time but these guys have differentiated themselves due to their experience and track record.
“I think it’s like anything: if you’ve got the best-of-breed investment managers managing an investment class, and they know the risk, they know the assets and they run them well, they can generate a strong risk-adjusted return.”
TRU is the responsible entity of the first New Forests Australia New Zealand Forest Fund (ANZFF) which commenced in 2010 and is now fully invested.
The ANZFF2 currently has $570 million in capital commitments and will be managed from New Forest’s Sydney headquarters.
“In the current environment, it is a particularly impressive capital raise given that, generally, capital raising for new funds is quite tough,” Mr Cannane said.
New Forests managing director David Brand said the sector has a high potential for growth.
“Australia and New Zealand offer attractive but distinct timberland investment opportunities, with some premier assets likely to come to market over the next two to three years,” Mr Brand said.
“We offer our clients specialist expertise and local knowledge in a region exposed to demand growth from both domestic and Asian export markets.”
