Forest Enterprises Limited

Bideford Forest Investment

Managed Investment Scheme

Register Interest
Transaction Size
NZD $4,804,300.00
Share Price
NZD $50.39
Minimum Investment
NZD $10,078.00
Issue Type
Managed Investment Scheme

About Bideford Forest

The Bideford Forest Investment is underpinned by a high-quality timber asset with a sustainable harvest, and improved by the ownership of carbon income.

Within 3 weeks of registration, over half of the shares in this offer had been secured.

Bideford Forest comprises two outstanding forestry blocks in the eastern hill country of Wairarapa, about 45km from the railhead near Masterton. Forest Enterprises established these neighbouring forests 30 years ago and is currently delivering a profitable first rotation harvest to the original investors.

The second-rotation radiata crop is being progressively replanted for the new investors, to a total net stocked area of 660+ hectares.

Projected Investor Contributions Returns

Investment returns from Bideford Forest will be from the sale of carbon credits and from timber harvest. A return on investment will be dependent on the price of carbon, on log prices during harvest, and from the sale of the land and any replanted trees at the end of the investment period (FY2051).

Income from carbon credits is projected from 2030 from eligible Post-1989 forest land representing around 80% of the forest. This tree crop will be managed to a framing regime (i.e. thinned but unpruned), providing the option of income from the harvest of a quality timber crop, depending on the carbon market and what the manager determines is best return for investors.

Income from harvest is projected 2047 and 2050 from the remainder of the forest, when the treecrop matures at age 26. This crop will be managed to a pruned regime.

Annual contributions (‘calls’) will be required to meet the budgeted forestry and investment expenses in the years to 2029, with tax deductions available each year against investors’ total income. Tax is payable by investors on their share of the investment’s annual income.

  • Minimum initial investment cost is $10,078 for 200 shares payable on application – to date, average
  • shareholding is around 800 shares per investor
  • Additional shares available at $50.39 per share (to a maximum shareholding of 20% of the total shares)
  • No calls for the first 2 years
  • Afford annual contributions require of $3,099* spread over just 5 years 2025-2029
  • Total projected gross investor return from harvest $121,809*
  • Projected pre-tax 14% IRR*

* All figures quoted are pre-tax and for the minimum investment of 200 shares. Based on 2% p.a. inflation, Forest Enterprises’ 36-month average log price series to 30 September 2022, and a price of $80 per carbon credit. Refer Product Disclosure Statement dated 25 November 2022 for the cashflow projection and assumptions. Refer Product Disclosure Statement dated 25 November 2022 for the cashflow projection and assumptions.

Investment Structure

Bideford Forest Investment is a managed investment scheme registered under the Financial Markets Conduct Act 2013. It has a supervisor and custodian, as well as independent financial and forest auditors.

The investment is structured as a limited partnership offering the investors (as limited partners) limited liability.

As licensed manager, Forest Enterprises Limited is responsible for the day-to-day forest management and investment administration.

The offers disclosure and governing documents, such as the Deed of Scheme Management, are available to view at www.companiesoffice.govt.nz/disclose (SCH13249).

About Forest Enterprises

Forest Enterprises is one of New Zealand’s leading forest investment managers. It is unique in being a full-service provider of both forest management and investment services. Forest Enterprises remains a locally owned and operated business, based in Masterton.

For 50 years, Forest Enterprises has helped over 6,500 investors grow their wealth through direct investments in high-quality, sustainable forestry. Since April 2017, it has paid over $110 million in harvest income to more than 3,000 investors.

Forest Enterprises manages over 35,000 hectares of production forestry in the North Island’s east coast regions of Wairarapa, Hawkes Bay and Gisborne, on behalf of its retail investors and other private forest owners. It is currently managing the harvest of 1 million tonnes of logs a year from Wairarapa and Gisborne, supplied to domestic sawmills and exported.

To register Interest

For more information click on the "Register Interest” button. We will provide you with the Product Disclosure Statement and connect you with the issuer.

December 23, 2022

Forest Enterprises Limited

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