Craigmore Sustainables’ Tōtara Forestry Partnership has successfully raised an additional NZ$50 million over the past quarter, bringing total commitments to nearly NZ$100 million. With a target of $200 million, the partnership is steadily approaching its goal, with a final close anticipated in 2025.

The partnership has assembled a diverse portfolio in New Zealand’s North Island, primarily focused on Pinus Radiata forests, complemented by native species riparian zones where appropriate. The investment strategy prioritises properties near to key ports and mills, leveraging returns from both timber and carbon markets.

Craigmore currently manages over 23,000 hectares of forest land, much of which is registered in the Emissions Trading Scheme and eligible for carbon credits, in addition to the normal returns from timber harvest.

Craigmore CEO, Che Charteris says Craigmore does things a little differently than larger timber investment management organisations.

“Our estates are built up by aggregating smaller properties over a longer period by leveraging our network across both the forest and farming sectors. This enables us to make fewer compromises when building a portfolio, and to focus on properties with good timber economics, strong growth rates for carbon sequestration and opportunities to significantly improve biodiversity outcomes.”

While early cashflow from carbon credits – trading at NZ$63 per unit as of late October  2024 – adds significant value, the partnership remains firmly focused on acquiring properties, which will yield long-term timber profits. New Zealand’s ideal climate supports some of the fastest-growing softwood plantations globally, enabling a 27-year rotation for high-grade structural and appearance grade timber.

Tōtara’s Overseas Investment Office (OIO) standing consent allows for the acquisition of up to 10,000 hectares of existing production forests (up to 2,500 hectares per property, with a total of 20 properties) until October 2026. This provides flexibility to acquire both newly planted and mature forests without requiring individual property OIO consents.

Published: 1 November 2024