The largest redwood forestry estate in Australasia, spread across more than 8,000 hectares of freehold land in New Zealand, is being offered for sale through Arotahi Agribusiness. Source: Voxy
The New Zealand Redwood Company is divesting the large estate, held in four blocks across the Ruapehu and Rangitikei districts in the central North Island, as well as Hurunui district in the South Island, along with its established forestry business via an international deadline sale process.
Jeremy Keating, managing director of Arotahi Agribusiness, says the sale is a “once in a generation” opportunity to acquire a premium-species forestry estate forecast to sequester over 108,000 tonnes of carbon a year by 2033, as well as offering the potential for the future supply of high-quality, sought-after lumber.
“This is a tremendously exciting proposition for both domestic and international investors looking to secure a large-scale forestry land holding for carbon and/or future harvesting. It’s a highly compelling investment opportunity offering outstanding carbon sequestration and lumber potential that is likely to attract significant offshore and local interest,” Mr Keating said.
The estate is being offered as either a share or asset sale, on behalf of Soper Wheeler Company, a well-established Californian forestry company. Arotahi Agribusiness is conducting a two-stage global sale process, with stage one inviting deadline offers by 9 June 2022 and stage two involving detailed due diligence and contract negotiation with shortlisted parties.
Wyatt Johnston, director of Arotahi Agribusiness, says the estate comprises a large proportion of the existing redwood forest in New Zealand, an iconic species with a very long life and a high growth rate.
“This is an estate of premium, hardy species with recognised high growth and long rotation, which is much less susceptible to windthrow or fire damage than pine. It also produces much higher value timber and sequesters significantly more carbon over its life cycle compared with pine,” Mr Johnston said.
The 8,108-hectare estate is offered with a well-developed business plan in place, with seedlings available to plant the best land in the estate between 2022 and 2024. Associated buildings and improvements are also included.
Over the past 20 years 3,166 hectares of the estate has been planted according to Mr Keating.
“The New Zealand Redwood Company has undertaken significant investment over the past two decades into establishing a clear and credible path to establishing its redwood forests. Thanks to the efforts of long-serving local management, a robust plan is in place to grow the estate supported by a ‘standing consent’ from the Overseas Investment Office,” Mr Keating said.
New Zealand’s exceptional growing conditions, coupled with a century of US parent company experience and genetic selection have underpinned the creation of the New Zealand Redwood Company estate, says Mr Johnston.
“New Zealand’s temperate climate and rainfall have already proved to be highly suitable to establishing redwood forest, with growth rates outperforming its native California,” he said.
Redwoods account for less than 1% of New Zealand’s planted forest estate of 1.79m hectares, which is dominated by 90% radiata pine.
