New Forests, the Sydney-headquartered global investment manager of nature-based real assets, has completed the final sale of its A$700 million ( US$467 million ) Australia New Zealand Forest Fund 2 ( ANZFF2 )

The buyer, Dutch pension investor APG, will take over management of nearly 200,000 hectares of certified forests, concluding a decade-long strategy focused on sustainable land use. It’s an exit that underscores New Forests’ strategy of delivering commercial returns through climate-conscious stewardship.

The ANZFF2 portfolio included a mix of softwood and hardwood plantations across Australia and New Zealand, all of which met Forest Stewardship Council certification.

The fund’s exit also underscores a growing appetite among institutional investors for nature-based assets that offer stable returns while aligning with environmental, social and governance mandates.

The deal includes a 38% interest in TFL, one of the largest producers of softwood logs in Otago – a region in the southern part of New Zealand’s South Island – comprising 24,700 hectares of plantable area, dominated by radiata pine and Douglas fir. The adjacent OEL estate, also sold to APG, spans 22,550 hectares, of which 18,900 hectares are productive. The proximity of both assets to regional sawmills and established export infrastructure made them attractive acquisitions.

“We are extremely pleased to have reached the end of ANZFF2’s 10-year fund life, where we have been able to deliver strong double-digit returns for our investors, and demonstrate long-term sustainability outcomes,” says David Shelton, New Forests’ managing director for Australia and New Zealand and global head of investments.

From APG’s perspective, the acquisition is not just about timber, but about long-term environmental alignment. Ben Avery, senior portfolio manager, private natural capital at APG Asset Management Asia-Pacific, adds: “Forestry continues to play a critical role in decarbonization and biodiversity conservation, and this transaction reflects our commitment to natural capital investments that deliver sustainable outcomes.”

Mainstreaming natural capital

While subject to regulatory approval, the deal wraps up what has been a pivotal year for New Forests, a year that revealed its increasing geographic ambition, a renewed focus on biodiversity outcomes and the growing institutionalization of natural capital strategies.

Over the course of 2025, New Forests has solidified its position as one of the most globally dynamic managers in forestry and natural capital.

The year began with the close of its A$600 million Australia-New Zealand Landscapes and Forestry Fund, a new-model blended return strategy aiming to fuse forestry, agriculture and carbon into a coherent investment thesis. In doing so, the investment manager attracted investors like Japan’s Kyushu Electric Power, drawn by the fund’s dual appeal of climate impact and stable returns.

In Southeast Asia, expansion came at pace. In January, it completed a majority investment in Burapha Agro-Forestry in Laos through its Tropical Asia Forest Fund 2 ( TAFF2 ), a move that extended its footprint in the Mekong region to nearly 85,000 hectares.

The acquisition signalled confidence in Laos’ potential to become a regional forestry hub, thanks to its favourable climate, underutilized land and proximity to high-demand wood markets.

Vietnam followed in June, as TAFF2 made its first move into the country with a strategic stake in Tavico Group, one of Vietnam’s leading timber processors. Tavico’s business – now producing 250,000 cubric metres of processed wood annually – is being positioned as a regional processing anchor for a future supply chain stretching from Laos to Cambodia and back into Vietnam.

Then, in November, New Forests returned to the Pacific with a landmark agreement to acquire a 75% stake in Kolombangara Forest Products, the Solomon Islands’ largest sustainable forestry business.

Each of these moves demonstrates the investment managers’ ability to knit together commercial forestry, community development and conservation into a coherent investment platform. The firm now manages US$8 billion across 4.2 million hectares globally.