Forest Enterprises is proud to provide the opportunity for you to invest in a sustainable, productive future for New Zealand.

Our two new investment opportunities are outstanding second-rotation Radiata pine forests in our home region of Wairarapa, ninety minutes from Wellington city. This is existing forest land we’ve been managing for decades, through to the productive harvest of the first rotation crop.

These are New Zealand’s first two forestry Managed Investment Schemes to be promoted under the new financial markets regime.

About the Wairarapa Group Investment

The Wairarapa Group Forest Investment comprises a total of 970 net stocked hectares of high quality forestry, across 3 geographically separate second-rotation forest properties in the Wairarapa.

The minimum initial investment cost is $10,189 for 200 shares, plus projected annual contributions per 200 shares of $10,458* spread over 20 years (next call 30 June 2020). The total projected contribution per 200 shares is therefore $20,647*.

Additional shares may be purchased at $50.95 per share.

Projected harvest years (income) is 2039-2045

Projected gross return on investment $115,531* and gross IRR 8.53%*

* Per 200 shares, based on 2% per annum inflation and Forest Enterprises’ 36-month log price series to 30 June 2018. Refer Product Disclosure Statement.

Wairarapa Group Forest Investment

How to invest

The Product Disclosure Statement (PDS) provides the necessary details to help you make a decision about investing. For a copy of the Wairarapa Group Forest Investment PDS, click the button below to complete the short online form, or contact Marketing Manager Nikki Coulmann – [email protected], +64 27 55 44 325. Your indication of interest does not involve an obligation or a commitment to acquire shares.

An application form for individual investors is included at the back of the PDS. To invest as a Trust, Company or Partnership, click here to download the appropriate form from our website.

The issuer of the shares in Wairarapa Group Forest Investment is the licensed manager Forest Enterprises Limited, and the offeror is Forest Enterprises Growth Limited (a related party of the manager). The investment’s disclosure documentation is available from the Companies Office Disclose register www.companiesoffice.govt.nz/disclose.

About the Ngatawhai Investment

Ngatawhai Group Forest Investment is a single forest property in Wairarapa, with 627 net stocked hectares of second-rotation pine forest plus several areas of permanent native bush and wetland.

The minimum initial investment cost is $9,726 for 200 shares, plus projected annual contributions per 200 shares of $11,071* spread over 20 years (next call 30 June 2020). The total projected contribution per 200 shares is therefore $20,797*.

Additional shares may be purchased at $48.63 per share.

Projected harvest years (income) is 2038-2046

Projected gross return $129,060* and gross IRR 9.33%*

* Per 200 shares, based on 2% per annum inflation and Forest Enterprises’ 36-month log price series to 30 June 2019. Refer Product Disclosure Statement.

Ngatawhai Group Forest Investment

How to invest

The Product Disclosure Statement (PDS) provides the necessary details to help you make a decision about investing. For a copy of the Ngatawhai Investment PDS, click the button below, or contact Marketing Manager Nikki Coulmann – [email protected], +64 27 55 44 325. Your indication of interest does not involve an obligation or a commitment to acquire shares.

An application form for individual investors is included at the back of the PDS. To invest as a Trust, Company or Partnership, click here to download the appropriate form from our website. Applications for shares will be processed from 7 October 2019.

The issuer of the shares in Ngatawhai Group Forest Investment is the licensed manager Forest Enterprises Limited, and the offeror is Forest Enterprises Growth Limited (a related party of the manager). The investment’s disclosure documentation is available from the Companies Office Disclose register www.companiesoffice.govt.nz/disclose.

Why our clients invest in forestry

Whether investing with us for the first time, or an existing Forest Enterprises client, our investors choose to invest in high-quality forestry because:

  • To supplement retirement income like Kiwisaver
  • For their children and grandchildren
  • To diversify their investment portfolio with a land-based investment
  • To change the weighting of their portfolio towards sustainability
  • To directly invest in a renewable resource that reduces atmospheric carbon
“We will definitely be reinvesting in the second rotation and so will our daughter.

Of the many investments we have made over the years, none have provided the exemplary communications and well-thought-out plans for the future that Forest Enterprises has.

This has provided us with total trust that you and your team have worked throughout in the best interests of investors – an all-too-rare approach in modern commerce.

Thank you again for the integrity and professionalism you have all shown in managing our forestry investments.”

Jim Burns - Investor, Hokoroa North Forest and Wairarapa Group Forest Investments

About our new investments

The Wairarapa Group and Ngatawhai investments bear the quality hallmarks of Forest Enterprises’ professional investments:

  • Managed Investment Schemes (MIS) registered under the Financial Markets Conduct Act 2013
  • Full-service investment and forest management is provided by licensed MIS manager, Forest Enterprises
  • Structured as Limited Partnerships for limited liability and optimal tax deductibility
  • Initial investment and annual contributions set at an affordable level for retail investors
  • Harvest profile provides cashflow over multiple years
  • Investments include land and trees
  • Forest size provides economies of scale, 600+ hectares
  • Benefits from second rotation forest characteristics

Benefits of investing in second rotation forestry

The Wairarapa Group and Ngatawhai investments benefit from second rotation forest characteristics, namely that the land is conditioned for pine, it has been replanted with genetically superior tree stock, and harvest infrastructure (road network and log processing areas) is already in place.

The first crop rotation of Radiata pine has changed the nature of the soil. The fungi and microbes now present have created an improved soil environment that best suits a pine crop for another rotation. Land suitability for pine will continue to improve with each rotation.
There have been significant genetic improvements in the treestocks available today compared with those planted for the first rotation. The genetic gains are known to produce more volume at the same age, and also to have the wood quality characteristics the market prefers.
Following harvest of the first rotation forests, they will be replanted consistent with how it was harvested. This means that the second rotation crop will be of the same age in each harvest area. The age of the first rotation treecrop when harvested is often mixed as it was originally planted to convenient boundaries (usually historical fence lines), with no regard to how and when it would be harvested.
By the completion of the first rotation harvest, many kilometres of harvest roads plus multiple landings and other permanent infrastructure will have been built in the forests, a substantial investment made (and mostly expensed) by the first rotation forests.

The existence of the roading and other infrastructure will materially reduce the related costs for the second rotation harvest. Also, the improved forest access provided by the roading network will considerably assist the management of the forest through to harvest.

Under Forest Enterprises management, the existing forest properties comprising our new group forests have proven that:

  1. a Radiata pine plantation forest can be successfully established and grown on the land
  2. it is possible to successfully harvest the forest properties and extract the logs produced to a public road
  3. the regional distribution infrastructure exists to successfully transport the logs by truck, rail and ship to their ultimate customers

The best practice management of a Radiata pine plantation forest continues to evolve over time. The second rotation forest will be managed in a manner consistent with current best practice and this will contribute further volume and quality gains to the second rotation.

The scale achieved by grouping forests together for their second rotation has the benefit for investors of mitigating risks and saving on costs.

Risk Mitigation

Adverse Event
The larger the forest, the greater the area available to absorb the consequences of adverse events such as wind or fire. The loss of 10 hectares in a 10-hectare forest represents total devastation; in a 250 hectare forest a material loss; but in a 600+ hectare forest the impact is relatively immaterial.

Market Exposure
The larger the forest (and the wider the spread of age classes), the longer the time in the market. The longer the time in the market, the greater the likelihood that the average log prices achieved will represent the long run average prices. Equally important is the increasing irrelevance of the day-to-day log prices, especially the inevitable periods of low prices, as these are likely to be balanced by periods of high prices. An additional benefit from a group forest structure is that complimentary age classes will extend the harvest profile and consequently enhance the mitigation of market exposure risk.

Cost Savings

Harvest Cost Savings
Harvest cost benefits arise when long-term arrangements can be put in place with the harvesting service providers (loggers, truckers etc). The long-term continuity of work for these service providers can remove from their prices the risk of down time from work, or having to invest time securing future work. Also, harvest costs such as the cost of resource consents and the cost of shifting equipment to the forest, are less of a financial burden the larger the forest.

Fixed Investment Cost Savings
The fixed investment related costs such as the financial and forest audits, Supervisor’s fees, and financial markets compliance fees, are less of a financial burden the larger the investment. Even fees such as rates are proportionately less due to there being just one set of fixed charges.

Forestry is profitable, tangible & sustainable

Forestry is a sustainable, real asset that generates real financial, economic and environmental returns from one generation to the next.

How our investments work

Not all forestry investments are the same. A Forest Enterprises investment is structured to provide investors with control and protection, and managed to maximise efficiencies and returns.

About us

Forest Enterprises helps investors grow their wealth through investing in some of the most exceptional pine forests in New Zealand, and by expertly managing them from establishment to harvest.

We do not provide financial advice

While Forest Enterprises provides forestry investment products and documentation relating to those investments, our staff cannot - and do not - provide specific financial or personalised investment advice. Investors should consult with an authorised adviser for financial investment advice specific to your individual circumstances and goals.

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