Awatea Forest Fund
An Investment in Land, Forestry and Carbon
Awatea Forest Fund is a production forestry and carbon fund targeting 5,000 hectares of premium, well located forest assets in the high growth regions of New Zealand. Providing your investment portfolio with regular distributions and capital growth potential.
TARGET FUND SIZE
5,000 HA
TARGET RETURN
7-10% P.A.*
MINIMUM INVESTMENT
$20,000 NZD
FUND STATUS
Open for Investment
For over 50 years, we have been investing alongside our clients in high quality forestry investments.
The Awatea Forest Fund focuses on profitable, sustainable and socially responsible investments, backed by land ownership. The Fund generates regular returns and capital growth for investors through the ownership of land, the sale of carbon credits and forest harvesting.
Roger Dickie New Zealand is a trusted forestry manager that is licensed under the Financial Markets Conduct Act (2013). The team has successfully established and currently manages over $1.85 billion NZD in forestry assets.
CURRENT FUND AREA
2,286 HA
AVERAGE ANNUAL RETURN
7.57% P.A.
NET ASSET VALUE
$24.32M NZD
UNIT PRICE
$1.20
Latest Fund Metrics – 30 September 2024
We are dedicated to delivering sustainable investment returns with meaningful environmental impact. Awatea aims to promote greater biodiversity, cleaner waterways, soil conservation, improved wildlife habitats and positive climatic change.
We invest alongside our investors because we believe the Awatea Fund provides exceptional risk-adjusted returns while delivering environmental, social and financial benefits – all backed by land ownership.
Fund Information
The Fund
Awatea leverages over 50 years of experience with the aim to acquire and manage 5,000 hectares of premium and diversified forest assets. Awatea is an evergreen fund (open-ended), meaning capital will be raised until the fund reaches its target size.
The Fund is targeting an investment IRR between 7% and 10%* per annum.
Key Metrics:
- Regular cash returns from carbon sequestration and harvest activities;
- Capital enhancement through natural biomass growth & active management;
- Diversification across a portfolio of assets;
- Investor liquidity via the pooling of investment and redemptions.
- Portfolio Investment Entity (PIE) for tax efficiency
- Open to all New Zealanders
Minimum investment of $20,000
Offered as a Continuous Offer Unit Trust under a Product Disclosure Statement
Licensed Managed Investment Scheme (MIS) for Retail & Wholesale Investors
RDNZ is a licensed manager of forestry investments under the FMCA 2013
Forest Assets
Awatea Forest Fund Currently owns or has contracted six properties located across four forest growing regions.
Te Koawa Station and Matawai Hills, the two founding properties, excellently located just 53km and 31km (respectively) from Eastland Port, Gisborne. The properties
contain a gross area of 733 hectares with 593 hectares of forest area, including 115ha of mature plantings, 361ha of 2022 plantings, and 117ha of 2023 plantings, including 41ha of redwoods. The founding properties provide a good cross section of production (for harvest) and permanent (for carbon) forestry.
Airstrip, the third property of the fund, is located in Pikowai, Bay of Plenty and 60kms from Port of Tauranga, New Zealand’s largest log export port, with other nearby domestic milling. The gross area is 452 hectares, containing 74ha of existing forest and 294ha of land afforested in 2023. 100% of Airstrip is to manage for production.
Goldstone, the fourth property of the fund, is a 444-hectare property located 59km north of Napier Port in the Hawkes Bay and 41km north of Pan Pac sawmill. The effective forest area is 296 hectares, comprised of 64ha of existing plantings, 183ha of 2023 plantings and 49ha currently held in forest right to a third party. The majority of Goldstone is to be managed for production.
Ngatoka, the fifth property, is a 262-hectare property (subject to survey) located in the Wairarapa region. The property is nearby to Masterton for forestry services and domestic sawmilling and is 129km from Wellington’s Centre Port. The property contains 184ha of effective area established in 2023.
Kinloch, in Waipukurau Hawkes Bay, adds an effective area 245ha, 98 km to Napier Port with 197ha being planted already during the 2023 season.
The fund continues to raise capital and expand its forestry investments, targeting diversification across geographies, species, age classes and maturities, establishing a high-quality forest portfolio.
Why invest in forestry
Forestry is a sustainable and socially responsible way to grow your wealth. We live in uncertain times which is why many investors are seeking alternative and real assets.
The advantages of forestry are:
- Trees continue to grow, even if the economy does not;
- Forestry offers uncorrelated and stable returns relative to other traditional financial asset classes, meaning forestry can positively impact and diversify your portfolio;
- Demand for logs and wood products is correlated with population growth and GDP per capita;
- A renewable resource and ideal long-term investment. Grow your family legacy;
- Trees absorb and store greenhouse gases (carbon dioxide), contributing to positive climate change.
Climate Change and the ETS
New Zealand has long term commitments to reach carbon neutral by 2050 under the Paris Agreement.
The Climate Change Commission recommends to increases the plantation forest area by 700,000 hectares (more than 40%) across 15 years to help reach those commitments.
Forestry is the most cost effective sequester (store) of carbon.
The Emissions Trading Scheme allows the exchange of carbon credits between emitters, the government and forest growers
Awatea is forecast to store 2.5 million tonnes of carbon across the average age of the forests for the targeted fund area.
A $50,000 investment in Awatea is expected to store enough carbon (on average) to offset 226 years of emissions for a single being (New Zealand capita equivalent.)
Why invest with Roger Dickie New Zealand?
More than 50 years’ experience investing in forestry assets.
Proven track record with Internal Rate of Return (IRR) of 10.03% p.a. across our forest investments since 2005.
An extensive private and public network for the sourcing and acquisition of premium assets.
More than $1.1 Billion of forest assets under management.
Sustainable harvest of 1.2 million tonnes per annum.
Licenced manager of forest assets under the Financial Market Conduct Act 2013.
Representing more than 3,000 investors, caring for your investment as if it were our own.
Providing the knowledge to grow your wealth.
Take part in a progressive, sustainable and climate positive forestry investment
Register your interest and receive the Product Disclosure Statement today!
*The above target returns are performance objectives only. The forecast returns and valuations have been independently sought. The forecast returns and valuations are only for the founding properties of the Fund, the Fund may perform materially differently than forecast and not intended to provide any indication of the performance of the Fund.
Roger Dickie (N.Z.) Limited is currently seeking preliminary indications of interest, which can be made by completing the above form. No indication of interest will involve an obligation or a commitment to acquire any financial products.
No offer of financial products is currently being made and no money is currently being sought. Financial products cannot currently be applied for or acquired. Any offer will be made in accordance with the Financial Markets Conduct Act 2013.
Prospective investors should seek advice from a financial advice provider before making an investment decision.