Finnish financial group Evli, Japanese energy company Kyushu Electric Power and an undisclosed German insurer are among the investors in a A$600m (€361.7m) fundraising by New Forests for an Australia and New Zealand landscapes and forestry fund.
New Forests said the final close of the Australia New Zealand Landscapes and Forestry Fund (ANZLAFF) was also backed by institutional investors from across Europe and Asia-Pacific, as well as the three new investors.
ANZLAFF’s first close, a year ago, saw initial commitments totaling A$450m from investors including Sweden’s AP2, Germany’s Bayerische Versorgungskammer, Australia’s Clean Energy Finance Corporation and unnamed Australian and German insurers.
ANZLAFF offers exposure to integrated forest, land, carbon and agriculture markets in Australia and New Zealand, focusing on investments in core forestry plantations, processing, related infrastructure and selected agriculture assets.
David Shelton, managing director for Australia and New Zealand at New Forests, said: “We are particularly pleased that existing clients have re-invested with us again, while we are also excited to welcome a cohort of new clients to New Forests via this fund.
“Some of these have come from the relationship with our new owners, Nomura Asset Management and Mitsui. We are looking forward to continuing to expand these relationships with all of our valued clients.”
Roger Naylor, portfolio manager at Evli Fund Management Company, said: “We are excited to make our first investment in the Australia and New Zealand region. This move not only enhances our portfolio diversification but also positions us to capitalise on the significant growth opportunities in both the domestic and Asian markets.
“New Forests is a proven and highly reputable local manager we regard as amongst the best in class for responsible investing. We are confident that by taking a landscape approach, the investment will deliver strong returns while meeting our high standards for ESG performance.”
Kenjiro Miura, chief group manager of Kyushu Electric Power’s industrial creation business, said: “We are proud to announce our first-ever investment in a forestry fund, a significant step aligned with our mission to contribute to the development of a sustainable society.
“By partnering with New Forests, a global leader in sustainable forestry management, we aim to create value not only through stable returns but also through meaningful environmental contributions, including CO2 sequestration and reductions in greenhouse gas emissions.”
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