Australia New Zealand Forest Fund 3


Last updated 11 May 2020, by Impactyield.

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ANZFF3 is a closed-end fund that will provide institutional investors exposure to plantation forests and forestry land in Australia and New Zealand. The fund had a first close of AU$663 million in November 2016.

Forestry assets and timberland are valued for low volatility and low correlation to traditional asset classes but positive correlation with inflation.

ANZFF3 will invest in high-quality timberlands in Australia and New Zealand, targeting forestry and land assets with a mix of returns from timber, land leasing, ANZFF3 will invest in assets that:

- generate revenues from the sale of timber and forest products;

- generate revenue from land leasing;

- benefit from capital appreciation in forest or land value; and

- may benefit from integration with agricultural, processing, or infrastructure assets.

ANZFF3 is building on the success of New Forests Australia New Zealand Forest Fund and ANZFF2, which, together, invested over AU$2.5 billion in over 500,000 hectares of softwood and hardwood timber estates in Australia and New Zealand.

Financial description

ANZFF3's target returns are 7.5% real IRR after management fees, before investor tax, and net of inflation with target cash yield of 3-5% per annum.

7 years

of track record


the year funded

800,000,000 AUD


Asset manager

New Forests Asset Management


Headquarters location:

Other funds managed by this asset manager: US Carbon Forestry StrategyTropical Asia Forest Fund 2

SDG goals

SDG targets

Sustainable food production and resilient agricultural practices

Key performance indicators

Fund overview

Asset manager: New Forests Asset Management

Product track record: Fund has 7 years of track record

Target IRR: 7.5%

Committed Capital: 663,000,000 AUD (Australian Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:


Inception year: 2016

Vintage year: 2017

Target region: , , ,

Target close date: 01/07/2017

Product term: 10 years

Assets under management: 800,000,000 AUD (Australian Dollar)

Investment size: Min: 50,000,000; Max: 500,000,000; Avg: 200,000,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 0

Fund investments to date exited or repaid: 0

Management fee: 1%

Carried interest: 20%

Hurdle rate: 10% nominal%

GIIN Investors' Council Investment: No

Limited Partners / Investors: UK pension fund UK corporate pension fund Swedish pension fund German pension fund

Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors


E-mail: n.a.


Phone number: +61 2 9406 4100

If you wish to have your details removed from this database please email

David Shelton

Director, Investments

Impact Performance


Impact thesis

New Forests invests to create productive and sustainable landscapes to benefit our clients and the communities where we operate. This impact focus includes:
- a rigorous pursuit of certification under the Forest Stewardship Council (FSC) within 18 months of acquisition and appointment of permanent property managers for all eligible assets;
- commercial development of environmental products and services (e.g. water rights, forest carbon offsets), where possible;'
- managing all assets in line with New Forests’ Social and Environmental Management System (SEMS) that ensures the corporate Social & Environmental policy is adhered to;
- monitoring performance and identifying areas for corrective actions and opportunities to create shared value;
- providing management controls to ensure corrective actions are taken and lead to continual improvement in performance.

Impact Management


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