Wairarapa Group Forest Investment 

  Agri-Business  

  

  Forest Enterprises Limited  

Overview

Wairarapa Group Forest Investment Scheme Overview


Forest Enterprises’ current investment opportunity is the Wairarapa Group Forest Investment, a managed investment scheme (MIS) owning 970-hectares of superior forestry in the Wairarapa.


Wairarapa Group Forest comprises 3 second-rotation forest properties, managed by Forest Enterprises through to the successful harvest of their first rotation crop. This investment is Forest Enterprises’ 50th MIS providing the benefits of scale and proven management experience.


The investment also benefits from second rotation forest characteristics, namely that the land is conditioned for pine, it has been replanted with genetically superior tree stock, and harvest infrastructure (roads and log processing areas) is already in place for the next harvest. All of these enhance the return on investment.


Forestry is a long-term investment over an estimated 26 years. Investment returns are projected to start in around 20 years when mature trees begin to be harvested. A return on investment will be dependent on log prices during harvest, sale of the land and any replanted trees at that time. See below for investor contributions and returns.


Investor contributions & returns

Forestry investment is contributory, with tax deductions available each year against investors’ total income.

The minimum initial investment cost for the Wairarapa Group Forest Investment is $9,200 for 200 shares, payable upon application. Additional shares may be purchased at $46 per share.


Annual contributions per 200 shares are projected to total $11,447* over 20 years. Calls are projected to average around $1,044* per year from 30 June 2019 for 8 years, then drop to an average of around $258* per year until harvest commences in 2039.

Total projected contribution per 200 shares is therefore $20,647*.


Projected return on investment is $115,531* and gross IRR 8.53%*. Projected harvest years (income) are 2039-2045.

* Per 200 shares, based on 2% per annum inflation-adjusted cashflow and a 36-month log price series to 30 June 2018. Refer cashflow pages 26-27 and section 6 of the Product Disclosure Statement from page 23.


Investment structure

               Wairarapa Group Forest Investment is a registered MIS under the Financial Markets Conduct Act 2013

               Full-service investment and forest management is provided by licensed MIS manager, Forest Enterprises

               Limited Partnership investment structure provides investors with limited liability and optimal tax deductibility

               Initial investment and annual contributions are set at an affordable level for retail investors

               Harvest profile provides cashflow over multiple years

               Investment includes land and trees


Why invest in forestry?

Forest Enterprises clients’ choose to invest in quality forestry:

               To diversify their investment portfolio with a land-based asset

               To change the weighting of their portfolio towards sustainability

               To directly invest in a renewable resource that reduces atmospheric carbon

               To play a part in growing New Zealand’s strong forestry economy

               To supplement retirement income

               For future generations


Risks

No investment is without risk. In forestry investment, risks can include risk to the crop – for example a fire, or pests or disease. The price of logs can also go up or down, meaning returns fluctuate depending on demand overseas. However, time in the market is a positive. There’s extensive insurance over Forest Enterprises’ managed forests, and the manager’s operational plans focus on risk mitigation as well as value creation.


About Forest Enterprises

Forest Enterprises is one of New Zealand’s leading forest investment companies and is unique in providing both forest management and investment services. Our business is to create wealth naturally for private investors via New Zealand pine plantation forestry.

On behalf of 6,600+ individual investors, we manage a forest estate of 20,000+ hectares in the North Island’s east coast regions of Wairarapa, Hawkes Bay and Gisborne.


Since being founded in 1972 in Masterton, New Zealand, Forest Enterprises has remained a locally owned and operated business. It have grown to 21 employees in total — including the company’s five shareholders — professionals in the fields of forestry, accounting and finance, administration, law, and sales and marketing. In 2018, an office was established in Gisborne city to locally manage Forest Enterprises expanding harvest programme in the region.


To Register Interest


For further information, including the Product Disclosure Statement, click on the "Register Now" button. We will provide you access to that document and you will be connected with the advisor to the issue.


Other documents relevant to the offer are available to view at www.companiesoffice.govt.nz/disclose.


The issuer of the shares in Wairarapa Group Forest Investment is the licensed Manager, Forest Enterprises Limited. The offeror of the shares in Wairarapa Group Forest Investment is Forest Enterprises Growth Limited (a related party of the Manager). 




Issue Type:
Agri-Business
Sector:
Forestry
isEOI: true

Investment Details

Investment Type: Retail

Transaction Size:NZD 4,600,000.00

Committed Capital: 

Pre-money valuation: 

Minimum Capital Raise: 

Share Price:NZD 46.00

Minimum Investment Size:NZD 9,200.00

Advisor

Wairarapa Group Forest Limited Partnership

Website: https://www.forestenterprises.co.nz/

Email: invest@forestenterprises.co.nz

Phone:+64 6 370 6360

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