The last few years we have been establishing a plantation on a farm in Marlborough for a small group of investors. This has also involved an Afforestation Grant from MAF in return for some of the carbon credits created.
We are looking for new good sites to plant in joint ventures for another prospectus based scheme to be sold to the public, or for individual investors who approach us.
Interest in forest investment is growing again for several reasons: Carbon credits is just one but there has also been a significant lift in demand for NZ plantation timber from Asia which appears to be quite sustainable. There is also now a better appreciation of assets like forests since the worldwide financial crisis.
Compound returns from plantations in NZ have averaged 7% net over the very long term and we are back to those levels again, but with carbon credits now, 9% is achievable. We think that should be enough to encourage new investment in new forests by those with a long term outlook and a desire to invest in real assets.
If you are interested, please contact us via this website.