Investment manager New Forests has announced its latest acquisition under the firm’s growing U.S. timberland investment programme, with the purchase of 10,400 acres of Humboldt County timberlands from Soper Company. The estate is known as the Pine Creek Timberlands and completes the placement of an investment fund focused on high carbon value forests in California, United States (U.S.).
“New Forests is pleased to acquire these high-quality Northern California timberlands,” said Jon Loevner, Manager of U.S. Investments for New Forests. “The Pine Creek Timberlands are an excellent fit with New Forests’ investment strategy in the U.S., whereby we manage forests to optimise revenues from a combination of timber harvest and carbon offset sales. This strategy enables us to lengthen harvest rotations to create higher value, larger logs while at the same time delivering a measurable, verifiable climate benefit through California Carbon Offsets.”
New Forests is one of the world’s largest forestry investment managers and has solidified a leading position as a developer of forest offset projects for California’s cap-and-trade market. Earlier this year, New Forests was awarded the 2017 Project Developer of the Year award by the Climate Action Reserve. New Forests currently has 23 U.S. carbon projects in development and operation.
“The world’s forests are a critical resource for climate change mitigation, with forests and land use offering up to 30 per cent of mitigation potential through 2030. New Forests’ U.S. timberland investment programme responds to this challenge by applying New Forests’ deep forestry and carbon asset investment expertise to the U.S. timberland market, delivering market-rate climate impact investment solutions to institutional investors.” said Brian Shillinglaw, Executive Director of New Forests Inc. “New Forests’ in-house geospatial analytics and carbon valuation skills, combined with a track record of responsible forestry investment, drive investment value while at the same time securing carbon storage and capturing the climate benefit of ongoing carbon sequestration in sustainably managed forests. This differentiated approach to investing in the U.S. timberland market presents a unique opportunity for institutional capital to make a meaningful contribution to climate mitigation while also meeting investors’ portfolio needs for higher risk-adjusted returns in real assets.”
The Pine Creek Timberlands include Douglas fir, mixed hardwoods, and redwood stands. The property has historically been managed for high value Douglas fir timber. The estate complements the recent acquisition of a predominantly redwood and Douglas fir forest with parcels located near Eureka on behalf of the same fund. New Forests also announced the acquisition of approximately 170,000 acres of mixed conifer forests in Northern California in early 2018, now operating as Shasta Cascade Timberlands LLC. The settlement on Pine Creek Timberlands brings New Forests’ U.S. timberland assets under management to 186,000 acres.
The company also manages more than 500,000 acres of forest carbon offset projects throughout the continental United States and Alaska. Globally, New Forests manages around 2.3 million acres (915,000 hectares) of forests and conservation investments with assets under management of approximately US$3.7 billion.