28 | Rayonier - Rohatyn Group T T Hugh de Lacy US investment firm extends its reach TRG has been investing in the New Zealand forestry sector since 1998. REGIONAL DEVELOPMENT A big new name has jumped to the fore in New Zealand’s forestry sector after the sale in March of Southland-based Rayonier to the New York-headquartered investment management firm The Rohatyn Group (TRG) for $710m. Rayonier managed 287,000ha of productive forests throughout New Zealand, and was part of the American business of that name that owned or leased over a million hectares of timberlands in the United States. The sale of Rayonier NZ and its Matariki Forests partner is part of the American company’s staged withdrawal from the global forestry scheme to concentrate on its American interests. TRG was founded in 2002 as a management firm specialising in emerging markets and real estate assets, and it comprises 150 professionals based in 216 countries across North and South America, Asia and Oceania, Europe, the Middle East, Africa, India and South-east Asia. Its business is the acquisition and management of diversified portfolios of timberland and farmland at prices that reflect biological yield potential. The company was founded by Nicolas Rohatyn, who had previously been with the giant financier JP Morgan, and who saw an opportunity to leverage his and his founding partners’ combined knowledge, skills and networks into providing specialised expertise in emerging markets. Since then, TRG has grown its diversified global asset-management business, in part thanks to its staff’s ability to speak no fewer than 25 different languages. A signatory of the United Nations’ Principles for Responsible Investment, and a member of the ESG Data Convergence Initiative, TRG’s services cover risk management, legal and compliance issues, operations and custody, marketing, investor relations and information technology. Rayonier’s exit from New Zealand will allow it to concentrate its capital resources on the US market, where it aims to enhance shareholder value by capitalising on what it sees as the disconnect between public and private timberland values in a higher interest rate environment. TRG’s takeover will allow the New Zealand business to benefit from the new owner’s experience in managing similar assets, both globally and in New Zealand. The $710m price for Rayonier’s 77% interest in Matariki Forests implies an enterprise value for the New Zealand joint venture of $922m. Mark McHugh, president and CEO of Rayonier was quoted as saying that, “After completing a comprehensive review of strategic alternatives for our New Zealand business, we believe the decision to sell our joint venture interest is the best path forward to create value for our shareholders.” Nick Rohatyn, TRG’s founder and CEO, says he was delighted to acquire Rayonier’s New Zealand business. “Like Rayonier, TRG’s team has a long history of involvement in the New Zealand forest industry, and we are excited about adding (Rayonier’s) New Zealand assets to complement our global portfolio of high-quality timberland investments.” TRG has been investing in the New Zealand forestry sector since 1998, and had expressed admiration for the way Rayonier ran its business here, particularly for the professionalism of its team who it says was recognised as leaders in the New Zealand industry. Andrew Haulage’s own Troy Calteaux – top digger operator in NZ for the past 4 years oversees the projects working in conjunction with Rayonier’s Team. For professional, friendly service: Phone 03 418 1299 Andrew Haulage have been consistently contracting to Rayonier since 1992, carrying out Southern Area roading requirements which involves many kilometres of new roads, construction of skid sites and hauler pads and the upgrading and maintenance of arterial roads throughout Rayonier’s and Matariki Forest’s forests. PROUD TO SUPPORT RAYONIER - SOUTHLAND
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