New Forests is announcing the first close of the Australia New Zealand Landscapes and Forestry Fund (ANZLAFF), raising approximately A$450 million from institutional investors from Australia and Europe.
Investors in the first close include Swedish pension fund Andra AP-fonden (AP2); German pension group Bayerische Versorgungskammer (BVK); the Australian Government’s Clean Energy Finance Corporation (CEFC); along with an Australian and a German insurer, as part of an overall fund raise targeting A$600 million over the next year.
ANZLAFF (the Fund) aims to provide investment exposure to integrated forest, land, carbon and agriculture markets in Australia and New Zealand, targeting investments in core forestry plantations alongside processing and related infrastructure, with some exposure to agriculture.
The Fund aims to maximise the value of the whole landscape by positioning investors to benefit from the best use of the landscape across forestry and agriculture, while combining additional revenue streams such as carbon, biodiversity, and renewable energy such as solar and wind.
In addition to attractive returns, the Fund has set other targets including carbon abatement through the establishment of new greenfield plantations and the conversion of existing plantations from hardwood (short rotations) to softwood (long rotations) in Australia.
ANZLAFF is New Forests’ fourth round Australia and New Zealand strategy, building on the experience of previous strategies, which collectively manage A$4.8 billion.
New Forests is a global investment manager of nature-based real assets and natural capital strategies.
