| 59 An inter-generational investment T Richard Loader The Awatea Forest Fund will provide retail and wholesale investors the opportunity to invest in a diversified portfolio of premium forests. T to page 60 Forestry is a good investment to have as part of a mixed portfolio, is the wise counsel from Roger Dickie, a veteran of the forestry industry. “It’s long-term, good for the family’s intergenerational investment, and a good hedge against inflation. When the price is low, you don’t harvest, you just grow more wood. Roger Dickie (NZ) Ltd is completing its 116th forest investment, most of which are in the Gisborne, Hawke’s Bay and Wairarapa, premium forest growing regions. Through its forest management company, Forest Management NZ Ltd, Roger Dickie (NZ) Ltd has been harvesting syndicated forests for the last six years, delivering strong cash returns to investors with many choosing to continue their investment for a second rotation, often for the benefit of their children. “We have 3,000 investors over 35,000 hectares of forest estate. Our investments are about 75% owned by New Zealanders, with the balance being international investment. “Our investment offerings range from syndicated through to institutional investment catering for retail (Mum and Dad) investors through to those with significant financial resources. We have recently established the Awatea Forest Fund, the first retail investment vehicle of this nature in forestry.” The Awatea Forest Fund will provide retail and wholesale investors the opportunity to invest in a diversified portfolio of premium forests with significant revenue generated from the sale of carbon and harvest. The Fund will establish 5,000 hectares with an estimated capital raise of $100 million and targets a +7% net pre-tax return over the long term. The fund is already 20% subscribed and invested in the first three months and enables New Zealanders to participate in commercial scale forest investment and to monetise positive climate change initiatives through the sequestration and sale of carbon credits. In October last year, Roger Dickie (NZ) Ltd reached a monthly milestone harvesting more than 100,000 tonnes through its forest management company and contractor workforce. “Our target over the next 10 – 15 years is about 1.4 million tonne annual harvest from our own forests. At the moment 25 – 28% of our total cut goes to eight domestic sawmills in Napier, Gisborne, Wairarapa and New Plymouth, mostly pruned logs, with the balance going to export. We actively manage our forests to a high quality and 90% are operated under a pruned regime. The consistency and quality of the logs we produce means our logs are in high demand in New Zealand and overseas.” A member of Principles for Responsible Investment, a United Nations supported international network of investors, Roger Dickie (NZ) Ltd has a strong focus on sustainability in all its operations. “We’re here for the long haul in terms of sustainability and viability of all our operations. “We’re proactive with soil and water conservation, protect the native vegetation on the properties we manage and we place emphasis on minimising environmental impacts from harvest. FORESTRY NZFOA: Roger Dickie (NZ) Ltd Contract Tree Harvesting 021 444 811 admin@stirlinglogging.co.nz Stirling Logging Ltd Proudly supporting Roger Dickie Forestry 0274 838 789 kandsbeardlogging@gmail.com Proudly associated with Roger Dickie Forestry 027 22 44 977 aclarkmhc@gmail.com MHC is proud to support Roger Dickie Forestry Professional tree harvest solutions drawn from experience, research and plant utilization. 021 939 500 aranakuru@arlogging.co.nz A&R Logging
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