North Sydney-based forestry and agriculture assets manager New Forests is to be acquired by Japanese investment firms Mitsui and Nomura, subject to regulatory approval.
New Forests, which manages a global portfolio of nature-based real assets valued at $7.8 billion and employs around 100 people, has entered into an agreement that will see Mitsui become a 49% shareholder and Nomura a 41% shareholder. The remaining 10% will be retained by New Forests’ staff. Mitsui has been a shareholder in New Forests since 2016 and currently holds a 23% stake. The value of joint investment has not been disclosed.
Announcing the deal, New Forests said Mitsui and Nomura would support New Forests’ continuing global investment program and would channel investment into the business, particularly from Japan and across Asia. The two firms shared New Forests’ commitment to sustainability and focus on sustainable forestry as central to the transition to a sustainable future.
New Forests’ founder and chief executive David Brand is to continue with the business for the next three years, during which time he will focus on strategic initiatives and growth opportunities. Two representatives from each of Mitsui and Nomura will join the New Forests’ board along with two independent directors and an employee nominee director.
Brand said: “New Forests has achieved a lot over the past 17 years, growing institutional investment in the forestry asset class and re-imagining the investment opportunities in rural landscapes. The rising need to substantially increase investment in sustainable land use, along with increasing investor interest, is creating an opportunity to accelerate the growth of New Forests.
Grant Samuel acted as financial adviser and Clayton Utz as legal adviser to new Forests on the transaction.