New Forests makes investment in the US South through acquisition of an Oklahoma forestry asset
Investment is part of New Forests’ strategy to focus on the US South – one of the largest forestry markets in the world
LONDON – 14 November 2024 – New Forests, the global investment manager of nature-based real assets and natural capital strategies, is today announcing the acquisition of 90,791 acres (36,741 hectares) of a forestry estate in Oklahoma from Rayonier, the timberland real estate investment trust.
The investment, which is part of a separately managed account, is New Forests’ first forestry investment in the US South – which accounts for over half the timber production in the United States.[1]
The asset is a multi-use forest, with an operating wind farm, commercial recreational leases across the entire forest, a mixture of natural and plantation stands, and a wealth of biodiversity that includes recovering indicator species such as the American black bear. The forest is located close to large sawmills, pulp and paper mills, which underpin timber sales.
Jeff Briggs, Managing Director, North America, New Forests, said:
This investment is well aligned with our underlying investment thesis that sustainable forest management in North America has the potential to deliver attractive investor returns.”
“We believe a forest management strategy that sequesters additional carbon compared to past management practices while producing a sustainable supply of wood fiber, has the potential to be successful across the US, and in particular the US South, a geography that presents substantial opportunity for New Forests and our investors.
“We are aiming to develop a carbon project, while maintaining an active harvest program and managing the forest on an optimized timber and carbon regime. Additionally, we will be supporting the local circular bioeconomy by focusing on producing sawtimber-sized logs while sequestering additional carbon compared to traditional management practices in the region.”
As part of the transaction, key management personnel will transition from Rayonier to New Forests’ property manager to ensure ongoing continuity of management, and maintenance of relationships with local communities. New Forests will continue to support recreational opportunities on the property, which includes granting public recreation access to a portion of the forest.
New Forests has been operating in the United States since 2007, and currently manages an open-ended US forestry strategy which seeks to deliver strong investment returns from a combination of timber and carbon. In 2023, the US forestry strategy acquired a 19,000 acre asset in Mount Shasta, California known as McCloud Forest.
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[1] Source: https://southernforests.org/forestry/products-environmental-services/
