Two European pension funds are set to purchase a 62% share in a timber producer in New Zealand.

APG Asset Management on behalf of its Dutch pension fund client ABP, and the UK’s Pension Protection Fund (PPF) have entered an agreement to purchase Sinotrans New Zealand’s shareholding in Wenita Forest Products.

Wenita is the largest timber producer in Otago, New Zealand and spans almost 30,000 hectares of sustainably managed forests. It is recognised as one of the premier softwood plantation assets in New Zealand.

Both ABP and PPF will purchase the 62% share from Sinotrans while the remaining 38% is held with New Forests’ Australia New Zealand Forest Fund 2. The agreement will bring total ownership of Wenita under New Forests’ management.

“Wenita is a well-managed, mature asset of scale with strong cash flows, and in a region with domestic distribution and access to export markets. New Forests’ continued involvement with Wenita’s management team will help identify new ways to add value to the business including implementation of our sustainable landscape investment approach,” New Forests senior managing director, Australia, New Zealand and the US Mark Rogers said.

“Having the support of investment partners, who have invested with us for many years, means our interests are strongly aligned.”

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