APG, the investment manager for Dutch pension giant ABP, has acquired a significant stake in a New Zealand forestry fund as part of its efforts to expand its natural capital portfolio.
The deal, which remains subject to regulatory approval, will see APG acquire the remainder of the A$700bn Australia New Zealand Forest Fund 2 from New Forests, an investment manager specialising in nature-based real assets.
APG will take a 38% stake in Taieri Forests Limited, a producer of softwood logs in New Zealand’s Otago region with 24,700 hectares of plantable area. It will also assume full ownership of Otago Estate Limited, a large-scale freehold softwood land estate covering 22,550 hectares, including approximately 18,900 hectares of productive forest.
Ben Avery, senior portfolio manager for private natural capital at APG Asset Management Asia-Pacific, said: “Forestry continues to play a critical role in decarbonisation and biodiversity conservation, and this transaction reflects our commitment to natural capital investments that deliver sustainable outcomes for our client, ABP. We look forward to further contributing to responsible management of these assets for the benefit of the forestry industry, local communities and the environment.”
Earlier this year, New Forests sold around 20,500 hectares of Australian forest land to OneFortyOne, a forestry and sawmilling business.
