New Forests’ TAFF2 acquires a 75% stake in KFPL, the Solomon Islands’ largest forestry business

SYDNEY: 12 November 2025 — New Forests, a global investment manager of nature-based real assets and natural capital strategies, has signed agreements for its Tropical Asia Forest Fund 2 (TAFF2) to acquire a 75% stake in Kolombangara Forest Products Limited (KFPL), the Solomon Islands’ largest sustainable forestry business.

KFPL spans approximately 40,000 hectares, comprising around 14,000 hectares of fully developed mature hardwood plantation and 26,000 hectares of rainforest under conservation management.

The investment will see New Forests’ TAFF2 work alongside Kolombangara Island Investment Limited (KIIL) and Investment Corporation of Solomon Islands (ICSI), to deliver long term economic, environmental and social impacts to the Solomon Islands and the Kolombangara community.

Some of the initiatives include modernising forest operations, improving road and port facilities, strengthening community engagement, and implementing training programs for workers.

As part of the broader partnership, ICSI agreed to transfer a 20% stake in KFPL to KIIL. This marks an important milestone as it reflects the fulfillment of the Solomon Islands Government’s commitment to the people of Kolombangara, which was 30 years in the making, and they will now have a direct stake in KFPL through KIIL’s 20% ownership. This structure will allow landowners to be actively involved in shaping the company’s future and will strengthen community engagement.

Jeremiah Manele Prime Minister of the Solomon Islands stated,

We welcome the progress of this partnership and recognise its potential to deliver meaningful benefits to local communities and the broader Solomon Islands economy.

Geoffrey Seeto, Senior Managing Director and Head of Emerging Markets at New Forests, commented,

KFPL has a rich history of sustainable forestry, and we are excited to build on that legacy. Together, we will look to enhance forest management, support local communities, and ensure that the natural capital of Kolombangara Island continues to thrive for generations to come.

Edwin Schramm, General Manager of KFPL, said,

“This partnership represents a new chapter for KFPL. With New Forests’ support and the involvement of landowners through KIIL, we are well-positioned to strengthen our operations, invest in our workforce, and continue delivering sustainable value to the Kolombangara community.”

The Restoration Seed Capital Facility helped to provide support to TAFF2 for the due diligence of the project helping to enhance environmental and social standards.

Please see a short video showing a glimpse into Kolombangara Forests.