About This Fund
The Australia and New Zealand Forestry Fund 2 (ANZFF2) is a closed-ended timberland fund managed by New Forests, a Sydney-based investment manager specialising in nature-based real assets and natural capital strategies. With a final size of approximately AUD 707 million and a 2014 vintage, ANZFF2 is the second dedicated ANZ forestry vehicle in New Forests' institutional fund series. The fund deployed capital across softwood plantation estates in both Australia and New Zealand, achieving full investment in July 2018 with the acquisition of Wenita Forest Products Ltd (later renamed Taieri Forests Limited) and the Otago Land Company's land holdings in New Zealand's Otago-Southland region.
ANZFF2 pursued a value-add forestry strategy centred on acquiring high-quality plantation assets and improving their operational and environmental performance over a circa-10-year fund life. The portfolio was managed to Forest Stewardship Council (FSC) certification standards for responsible forest management. Active management initiatives included increasing log sales volumes, enhancing operational efficiencies, registering carbon credits under Australian and New Zealand carbon schemes, and protecting high-conservation-value areas. The fund's assets included a mix of softwood plantations (radiata pine and Douglas-fir) and conservation land.
ANZFF2 concluded its fund life in December 2025, delivering what New Forests described as 'strong double-digit returns' for investors alongside material sustainability outcomes. The final dispositions involved the sale of two New Zealand forestry estates — a 38% interest in Taieri Forests Limited (24,700 hectares in Otago) and full ownership of Otago Estate Limited (22,550 hectares) — to APG Asset Management, investing on behalf of ABP, Europe's largest pension fund. The fund's conclusion preceded the launch of the successor vehicle, the Australia New Zealand Landscapes and Forestry Fund (ANZLAFF), which held its final close at AUD 600 million in January 2025.