Superannuation Fund Purchase of NZ Timber Assets
For Immediate Release
11 October 2005
New Zealand Superannuation Fund Announces Purchase of New Zealand Timber Assets
The New Zealand Superannuation Fund (NZSF) announced today that it has entered into an agreement with James Fielding Funds Management (JFFM), as trustee of the New Zealand Sustainable Investments Fund (NZSIF), to purchase a 12,273 hectare forestry estate in the Auckland region from NZSIF.
JFFM was recently confirmed as the unconditional purchaser of land and forestry assets of Evergreen Forests Limited (Evergreen) with settlement expected to occur on 31 October 2005. JFFM has agreed to sell NZSF approximately half of these assets with settlement on the same date.
NZSF will acquire the ex-Evergreen land and forestry estates around the Auckland area (including the Coroglen, Endean, Kopu, Patetonga, Putawa and Rototuna forests) while James Fielding's NZSIF will retain 13,344 hectares around the Gisborne region.
NZSF also advises that it has appointed GMO Renewable Resources (GMO) as a manager of New Zealand timber assets. These assets will form part of that mandate.
This transaction represents the first purchase of timber assets for the Fund. In March 2005 it announced that it was planning to allocate up to 5% of assets to timber by June 2007, with a targeted mid-point of 2% by that date. As a long term investor, with no requirement for regular cash flows from investments, NZSF is well suited to hold timber as an asset class.
The value of the New Zealand Superannuation Fund as at 30 September 2005 was $7.6 billion.
Notes for Editors:
About the New Zealand Superannuation Fund:
The New Zealand Superannuation Fund, which commenced investing at the end of September 2003, is designed to partially provide for the future cost of New Zealand superannuation. An ageing population means the cost of providing New Zealand superannuation is expected to double over the next 50 years. To prepare for this, the Government is allocating on average $2.2 billion a year to the Fund over the next 20 years while the cost of superannuation is relatively low. In the meantime, the Fund will invest the money on a prudent but commercial basis.
As the cost of superannuation escalates, the Government will progressively draw on the Fund to help smooth the impact on its finances. As at 30 September 2005 the value of the Fund was $7.6 billion. The Fund is expected to grow to around $120 billion by 2025. www.nzsuperfund.co.nz
About James Fielding Funds Management
James Fielding Funds Management is the
funds management division of Mirvac Group, a leading
diversified property group. The Australian Sustainable
Investments Fund are wholesale infrastructure funds focused
on foresty-based income streams which are enhanced through
sustainable value-adding such as carbon credit sales,
renewable energy development, biodiversity and salinity