Netherlands-based Stichting Pensioenfonds ABP (ABP) and United Kingdom-based Pension Protection Fund (PPF) have purchased Sinotrans New Zealand’s 62% shareholding in Wenita Forest Products.
Mosgiel-based Wenita manages 30,000ha of forestry area across Otago and employs 14 staff and about 120 contractors.
The two funds, along with Australian-based New Forests Asset Management Pty Limited, which has had a stake since 2018, bought into Wenita Forest Products Ltd using a newly formed holding company, Taieri Forests Ltd.
New Forests is headquartered in Sydney and serves as a global forestry investment manager.
According the Companies Office website, ABP owns 34.31%, PPF owns 27.69% and New Forests owns 38% of Taieri Forests.
The records show the holding company took ownership of Wenita last Thursday, September 30.
The agreement would bring Wenita under New Forests’ management.
The deal was announced to foreign media late last week, but has not been reported in New Zealand so far.
When contacted yesterday, Wenita chief executive Dave Cormack referred the Otago Daily Times to New Forests.
In a statement, New Forests senior managing director of Australia, New Zealand and the United States Mark Rogers said Wenita was a well-managed, mature asset of scale with strong cashflows, and in a region with domestic distribution and access to export markets.
"New Forests’ continued involvement with Wenita’s management team will help identify new ways to add value to the business including implementation of our sustainable landscape investment approach," he said.
APG Asset Management is managing ABP’s assets.
APG Asset Management head of infrastructure and natural resources Hans-Martin Aerts said it was pleased to partner with PPF and New Forests to acquire a controlling interest in Wenita.
PPF head of infrastructure, timberland and farmland Lea Dubourg-Hrachovec said Wenita was the fourth addition to its growth programme of direct investments into sustainable forestry assets globally.
"What attracted us to Wenita is its long-established operational track record, mature, high quality forest portfolio with a close proximity to the deep-sea port of Chalmers [sic], which makes it a very highly prized forestry asset in New Zealand. We believe Wenita has a great long-term potential and were very excited to be part of its future alongside our partners APG and New Forests," she said.
The statement from New Forests also confirmed there would be "no significant changes" to Wenita’s employees following the deal, and that the commercial terms were confidential.
Land Information New Zealand confirmed the deal required approval and said further information would be published at the end of the month.
