About This Fund
Australia and New Zealand Forestry Fund 2 (ANZFF2) is a closed timberland investment fund managed by New Forests Asset Management, one of Australia's leading forestry and natural capital investment managers. With total committed capital of approximately A$700 million, ANZFF2 was fully invested by 2018 and built a diversified portfolio of approximately 200,000 hectares of certified softwood and hardwood plantation forests across Australia and New Zealand, all meeting Forest Stewardship Council (FSC) certification standards for responsible forest management and ecological stewardship.
The fund pursued a long-term, core-return timberland strategy targeting inflation-linked returns derived from timber harvests, carbon credit revenues, biodiversity value, and land appreciation over its ten-year investment horizon. New Forests' operational expertise in plantation management and its deep relationships with domestic and international timber buyers, processors, and export markets enabled active value creation across the portfolio throughout the fund's life. ANZFF2's investment mandate allowed for selective investment in processing infrastructure and related facilities such as sawmills, bioenergy plants, and port access assets to maximise integrated supply chain value and diversify revenue streams.
ANZFF2 achieved full realisation of its portfolio in December 2025, completing a series of asset sales to leading institutional investors. APG Asset Management, one of Europe's largest pension investors managing over €600 billion in assets, acquired the fund's final New Zealand forestry assets located in the Otago region. The fund delivered strong double-digit returns across its ten-year life, validating the long-term value creation potential of sustainably managed forestry assets in the Australasian region. New Forests has subsequently launched successor vehicles including Australia New Zealand Forestry Fund 3 (ANZFF3), which raised over A$660 million, and the Australia New Zealand Landscapes and Forestry Fund (ANZLAFF), which targets integrated forest, land, carbon, and agriculture markets across Australia and New Zealand.