New Forests has expanded its US portfolio with the acquisition of a 90,791-acre forestry estate in Oklahoma, marking its first investment in the US South.
New Forests, which has been operating in the US since 2007, said it acquired the estate on behalf of a separately managed account from timberland real estate investment trust Rayonier. Financial details were undisclosed.
As part of the deal, key management and operational staff will transition to New Forests’ property manager to ensure a smooth handover.
New Forests said the asset is a multi-use forest, with an operating wind farm and commercial recreational leases across the entire forest.
The $8bn (€7.6bn) global investment manager of nature-based real assets and natural capital strategies said the asset also has a “mixture of natural and plantation stands, and a wealth of biodiversity that includes recovering indicator species such as the American black bear”.
New Forests said the acquired asset, which is located near large sawmills and pulp and paper mills provides a foundation for timber sales.
Jeff Briggs, MD of North America at New Forests, said: “This investment is well aligned with our underlying investment thesis that sustainable forest management in North America has the potential to deliver attractive investor returns.
“We believe a forest management strategy that sequesters additional carbon compared to past management practices while producing a sustainable supply of wood fibre, has the potential to be successful across the US, and in particular the US South, a geography that presents substantial opportunity for New Forests and our investors.”
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