Wholesale
Forest Enterprises Limited

Pukekōwhai Forest Investment

Managed Investment Scheme

Register Interest
Transaction Size
NZD 3,388,800.00
Share Price
Minimum Investment
NZD 8,472.00
Issue Type
Managed Investment Scheme
Sector
Forestry

About Pukekōwhai Forest (90% sold!)

Pukekōwhai Forest comprises three outstanding forestry blocks in the eastern hill country of Wairarapa, about 45km from the railhead near Masterton. Forest Enterprises established these 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 800+ hectares.

Pukekōwhai Forest Investment can expect enhanced returns from the characteristics of second rotation forestry, such as improved soil conditions and tree crop genetics. The infrastructure required for the next harvest is also in place. Main harvest is scheduled 2044-2051 as/when the tree crop matures at age 26.

Projected Investor Contributions & Returns

Forestry is a long-term investment. Investment returns from Pukekōwhai Forest are projected to occur 2044 - 2051 when mature trees are harvested at age 26. A return on investment will be dependent on log prices during harvest, and from the sale of the land and any replanted trees at the end of harvest.

Forestry investment is contributory. Investors make annual contributions (‘calls’) until harvest to meet the budgeted forestry and investment expenses. Tax deductions are 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 $8,472 for 200 shares (1 investment ‘unit’) payable on application
  • Additional shares may be purchased at $42.36 per share (to a maximum shareholding of 20% of the total shares)
  • Calls average around $1,195* per year for 13 years, then reduce to average around $390* per year for 2 years – first call is 30 June 2022
  • Total projected gross investor contribution before harvest $25,429*
  • Total projected gross investor return from harvest $129,732* (projected gross 7.68% IRR*)
  • Contributions and returns are pro-rated per share

* Per 200 shares, based on 2% p.a. inflation and Forest Enterprises’ 36-month average log price series to 30 June 2021. Refer Product Disclosure Statement dated 10 September 2021 for the cashflow projection and assumptions.

Investment Structure

Pukekōwhai 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

About Forest Enterprises

Forest Enterprises is New Zealand’s leading forest investment manager. It is unique in providing both forest management and investment services. Forest Enterprises remains a locally owned and operated business.

For nearly 50 years, Forest Enterprises has helped over 6,500 investors grow their wealth through investments in forestry. Since April 2017, it has paid over $90 million in harvest income to more than 2,500 investors.

Forest Enterprises manages over 35,000 hectares of sustainable 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.

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.

The Forest Enterprises team is hosting a tour of the Pukekowhai Forest next weekend, 10am - 2pm on Saturday 13 November. Forest visits are a popular feature of Forest Enterprises' investment experience and are a great opportunity to see first-hand the scale of Pukekowhai Forest, the young tree crop and the infrastructure network. This tour is free to attend, and includes lunch and return transport from Masterton. Sign up here.

Pukekōwhai Forest Investment 2021
October 19, 2021
19/10/2021

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