NEW ZEALAND - The New Zealand Superannuation fund has acquired a further 77,500 acres of timber investments as part of its aim to allocate 5% of total assets to the new asset class.
The recent investment compliments the 12,273 hectare forestry estate purchased by the fund in October.
The investments comprise of 45,00 acres of Loblolly Pine located in Texas, US; 18,000 acres of Hemlock and Douglas Fir situated in Washington, US, and timber management rights to the Tahorakuri property in the Central North island, New Zealand.
The fund has now reached 80% of its 5% allocation commitment of assets to timber since it announced the proposals in June. With this transaction, the combined value of all timber investments now owned reached, NZ$300m, divided between New Zealand and the US.
“As a long term investor, with no regular cash flows from investments, timber is an attractive asset class for the Fund,” said Paul Costello (pictured), the fund’s chief executive.
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