Forestry

New Zealand is a significant producer of wood products for the Asia-Pacific region. The international reputation of New Zealand's forests has captured the attention of forestry investors for a long time. Forests are also a critical carbon sink and have a role to play in the Emissions Trading Scheme and for voluntary offsetting towards being carbon neutral.

The forestry industry is undergoing significant change with an increased focus on meeting climate change commitments, right tree, right place, competing demands for products, processing and export issues, increased demand for biofuels and a constantly changing regulatory environment.

We have worked alongside the forestry sector for over 30 years and are well-placed to guide clients through the legal issues affecting their businesses. Our forestry specialists work with experts, across our other practice areas, to deliver a wide range of services. Our services include advising on:

• acquisition of forestry assets
• joint ventures
• operational arrangements (from planting and harvesting to processing and exporting)
• New Zealand's overseas investment regime
• tax structuring
• the emissions trading scheme, both in respect of earning and trading carbon credits and entering into off-take agreements with emissions producers
• the role of forestry in becoming carbon neutral
• long-term supply arrangements, relevant to biomass options.

We have advised timber investment management organisations (TIMOs) and overseas investors. These investors include Matariki Forests, Soper-Wheeler, Port Blakely, China National Building Materials, The Campbell Group, Hansol and Global Forest Partners.

Examples of our work

• Matariki Forests Group (New Zealand's third largest forestry company) - numerous projects including:
  • establishment of AVA Timber log export JV, with Hancock Natural Resource Group Australasia Pty Ltd, creating NZ's largest log export JV operation
  • $167 million investment in it by London-listed Phaunos Timber Fund
  • advice on purchase of forestry land and assets and ongoing forestry management issues
• New Zealand Carbon Farming - acting on its New Zealand wide forestry (ETS) acquisition and leasing program
• Harvard Management Company, Inc (investment arm of Harvard University) - advising on its New Zealand forestry and farming investments, including the sell-down of its stake in Kaingaroa Forest (valued at approximately US$650 million) to Canadian pension fund Public Sector Pension Investment Board
• Port Blakely - acquisition of multiple forests, preparing template operational arrangements and providing tax and corporate structuring advice
• Advising emissions-intensive businesses on using forestry as part of their emissions reduction strategy and on supporting documentation
• Multi-national wood processors - acquisition of large-scale wood processing facilities, and general commercial advice
• Various United States funds - acquisition and operation of New Zealand forestry and/or farming assets and investment in NZ businesses
• Watercare Services - purchase of a 1800-hectare commercial pine forest as part of a native forest regeneration project in the Hunua ranges aimed at better preserving Auckland's water supply
• PF Olsen - commercial and property advice
• Guru Forests - commercial and property advice
• Advising on security interests in harvested timber