TOKYO and SYDNEY, February 29, 2016 – Mitsui & Co., Ltd. (“Mitsui”, Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) announced today that it has entered into an agreement to acquire a 22.5% shareholding in New Forests Pty Limited (“New Forests”, Head Office: Sydney, Australia). New Forests is an investment manager specializing in sustainable forestry and land management in Australia, New Zealand, Asia, and the United States. Founded in 2005, New Forests has assets under management of AUD 2.8 billion (approximately ¥240 billion) including more than 600,000 hectares of timber plantations, rural land, and conservation investments globally. New Forests is one of the ten largest forestry investment managers in the world and the largest focused on the growing timber markets and plantation sectors of the Asia-Pacific region.
New Forests is also distinguished by its commitment to high levels of environmental performance and positive social and community outcomes in its investment and forestry asset management policies. The company is a signatory to the United Nations-supported Principles for Responsible Investment as well as other industry and membership groups supporting best practices in forestry, responsible investment, and sustainability. New Forests also has a commitment to third-party certification of the sustainability of all its investments and operations.
Over the past 30 years, institutional forestry investment, including funds, direct investments, and timber REITs, has grown to more than USD 100 billion (approximately ¥12 trillion). The sector is positioned for further growth in the coming years as institutional investors seek to increase investment in real assets like timber, agriculture, real estate, and infrastructure. In addition, global timber demand is expected to grow at 1.5-2% per annum, and incremental growth in supply will need to come from sustainably managed plantations. Mitsui’s investment in New Forests is part of its strategy to increase and diversify its investment in forestry to meet the world’s growing demand for sustainably produced timber from well managed forest resources.
Mitsui looks forward to supporting the growth of New Forests and the sustainable forestry investment model, positioning this investment at the centre of its business portfolio. Through this investment Mitsui will contribute to sustainable development while providing a stable supply of wood resources through New Forests’ business.
Mitsui will support the growth of New Forests using its extensive business network and knowledge accumulated through its long-term engagement in the forest sector. Mitsui also has expertise in asset management and financing and the capacity to support New Forests in entering the Japanese institutional investment market. Working together, Mitsui and New Forests hope to expand Japanese institutional investment in the forestry sector.
About New Forests
New Forests (www.newforests.com.au) is a sustainable real assets investment manager providing leading-edge strategies in forestry, land management, and conservation. Founded in 2005, the company offers institutional investors targeted opportunities in the Asia-Pacific region and the United States and has over AUD 2.8 billion in assets under management. New Forests’ clients include pension funds, superannuation funds, and other institutional investors. The company is headquartered in Sydney, Australia with offices in Singapore and San Francisco.
Mitsui & Co., Ltd. (“Mitsui”) is one of the most diversified and comprehensive trading, investment and service enterprises in the world, with 140 offices in 66 countries as of Feb, 2016. Utilizing its global operating locations, network and information resources, Mitsui is multilaterally pursuing business that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fields: Iron & Steel Products, Mineral & Metal Resources, Infrastructure Projects, Integrated Transportation Systems, Chemicals, Energy, Food Resources, Food Products & Services, Consumer Services, IT & Communication, Corporate Development Business. Mitsui is actively taking on challenges for global business innovation around the world. For more information, visit http://www.mitsui.com.