Our Forestry Investments

Our Secondary Market

Forest Enterprises operates a market for the sale and purchase of existing forest investments called a secondary market. Our secondary market enables existing investors to liquidate their investment and prospective or repeat investors to buy into one of our existing investments

More information on how the Secondary Market works is set out below, including -

        What is the difference?
        The steps to investment
        How the Tender process works
        What happens after acceptance of your Offer?
        The costs involved
        Forest Enterprises role
        Tender Form including full Terms and Conditions
        Partnership Investments and the Secondary Market

As an alternative you can download this information as a PDF file.

Forest Enterprises Secondary Market (398KB)
We recommend you download this file to your computer. To do this right-click on the file, select 'Save as' and save to your P.C. When the download is complete open the saved file. (You will need Adobe Acrobat Reader to view PDF files. If you need details on how to get Adobe Acrobat Reader click here)

What is the difference?

It is called a ‘secondary market’ in keeping with the convention that new issues are sold on a ‘primary market’ and existing on a ‘secondary market’. A new issue is a recently (or about to be) planted forest.

An investment purchased on our secondary market is a Forest Enterprises investment and therefore has the same industry leading forest management and administration characteristics that are the hallmark of all our investments dating back over the last 32 years. Secondary market investments differ in only two respects –

the investment is in an established forest; and
you nominate the price you are prepared to pay

Sometimes there will be investment(s) for sale at a fixed price e.g. newly replanted forests following harvest, and these will be clearly identifiable.

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The steps to investment

Study the list of current investment opportunities. You can view these here.
Select the investment (or investments) that attract your attention and request or download a copy of the comprehensive Investment Report.
Carefully study the Investment Report.
If you wish to invest, decide on the price you are prepared to Offer the Seller based upon the indicative Initial Cost and other information set out in the Investment Report.
Complete and return the Tender Form by mail, fax or email (after scanning) to Forest Enterprises. Tender Forms are included with the Investment Report.

The Investment Report for a fixed price investment will contain an Application or Share Transfer Form instead of a Tender Form plus clear instructions on how to invest.

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How the Tender process works

Your Offer is dated on receipt and is valid for 10 working days to allow time for it to be considered by the Seller or Sellers (sometimes there may be multiple Sellers of the investment you wish to purchase).
Your Offer price is communicated by fax or email to the Seller (first Seller if more than one) who has a maximum of three days to respond. We will also endeavour to contact the Seller by telephone to discuss your Offer.
If there is more than one Seller and the first Seller declines (or the three days elapse) your Offer is then communicated to the second Seller and so on until all Sellers have had the opportunity to consider it.
If your Offer is accepted, a binding contract then exists between yourself and the Seller. You will be formally advised of the acceptance of your Offer by either fax or email (whichever you nominate in the Tender Form) plus we will endeavour to contact you by telephone. See below for further details of the settlement process (payment etc).
If your Offer is declined, you will be formally advised by either fax or email (whichever you nominate) plus we will endeavour to contact you by telephone to discuss the options available, including any indications received from the Seller(s)
of a price they may be prepared to accept.
You may choose to increase your price, and do so by communicating this by fax or email to Forest Enterprises. Increasing your price has the same effect as submitting a new Offer. There is no restriction on the number of times you may increase your price other than if Forest Enterprises deems that your new price is not materially different to your previous price(s).
If not accepted, your Offer lapses after 10 working days.

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What happens after acceptance of your Offer?

As noted above, once your Offer is accepted a binding contract exists between yourself and the Seller with serious legal consequences should you subsequently default.
As soon as possible following the acceptance of your Offer, we will notify you by either fax or email (whichever you nominate) plus we will endeavour to contact you by telephone. Following shortly after this communication will be a letter enclosing the documentation to execute and return together with your payment of the amount of your Offer plus a Transfer Fee of $75.
The due date for return of the documentation and payment is 7 working days from acceptance of your Offer. Payment is made to our special purpose trust account.
We process the documentation and a Share Certificate is issued in your name and mailed back to you within approximately 2 weeks.
In addition, we process payment to the Seller who receives your Offer price less our brokerage for the transaction.

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The costs involved

The only cost to you at time of purchase (in addition to your Offer price) is a $75 Transfer Fee per investment unit of 200 shares paid to cover the cost of updating the share register and the associated records in Forest Enterprises systems.

The Seller is responsible for payment of our brokerage for the transaction. The Seller will have paid Forest Enterprises a Listing Fee at the time the investment was listed for sale.

Having purchased an investment, you are then responsible for the projected future payments as set out in detail in the Investment Report.

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Forest Enterprises role

Forest Enterprises role is a coordination one specifically to -
Operate the market to provide the opportunity for willing buyers to be matched with willing sellers.
Maintain up to date information for inclusion in the comprehensive Investment Reports.
Act as the communication agent between the Buyers and Sellers.
Process the associated documentation.

Forest Enterprises has no liability to the Buyer should the Seller default in its obligations to complete the sale and transfer.

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Tender Form including full Terms and Conditions

You can download a Tender Form below -

Tender Form (62KB)
To download this file this right-click on the file, select 'Save as' and save to your P.C. When the download is complete open the saved file. (You will need Adobe Acrobat Reader to view PDF files. If you need details on how to get Adobe Acrobat Reader click here)

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Partnership Investments and the Secondary Market

The secondary market for shares in our older style partnerships (investments co-ordinated between 1972 and 1992) operates differently.

As partnership investments are constrained by pre-emptive rights as set out in the Deed of Partnership, when a partnership investment is for sale on our secondary market the price is fixed at the price the investment was offered to the other partners.

A buyer therefore makes a Fixed Price Offer rather than a Tender Offer. Provided shares are still available when the Offer is received, a sale and purchase is concluded. Payment and transfer is handled by the Partnership solicitor. Whilst Forest Enterprises has no control over the legal fees, the cost is likely to be around $200.

Partnership shares only occasionally become available on our secondary market.

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