Huntingwood Forest LP - Product Disclosure Statement - Roger Dickie
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Huntingwood
Forest LP
Product Disclosure
Statement
This is an offer of Units in Huntingwood Forest LP,
a limited partnership issued by Roger Dickie (N.Z.)
Limited
This document gives you important information about this investment to help you
decide whether you want to invest. There is other useful information about this offer
on www.disclose-register.companiesoffice.govt.nz. Roger Dickie (N.Z.) Limited has
prepared this document in accordance with the Financial Markets Conduct Act 2013.
You can also seek advice from a financial adviser to help you to make an investment
11 September 2020
decision.
1. Key information
have the opportunity to vote by way of Ordinary Resolution
to continue the Partnership for a further rotation or to sell
summary
the Partnership assets and terminate the Partnership. If the
Subsequent Property is not purchased within 24 months of
the conclusion of the first harvest of the Initial Treecrop, the
meeting will be held within six months of the end of that
1.1 What is this? 24-month period.
This is an offer of Units in Huntingwood Forest LP (‘Partnership’ Investment objectives and strategy
or ‘scheme’). Your money will be pooled with other investors’
The Partnership’s investment objectives and strategy are
money and invested. Roger Dickie (N.Z.) Limited invests the
to acquire the Initial Property (land and near-to-harvest
money in assets, such as acquiring, establishing and maintaining
Treecrop), complete the harvest and invest the harvest
forest assets for eventual harvest, and takes fees. The assets
proceeds in acquiring the Subsequent Property (a greenfield
and fees are described in this document. By investing in this
property that is yet to be identified), complete the planting
scheme, you are relying on the investment decisions of Roger
and management of both forests, sale of Carbon Credits
Dickie (N.Z.) Limited and returns from the assets that the
for the Subsequent Property, harvest of the Treecrops,
scheme invests in. There is a risk that you may lose some or all
replanting and concluding sale of the land with the intention
of the money you invest.
of maximising the distributable returns to the investor.
1.2 Who manages this scheme? Key existing and proposed Partnership property
The licensed manager of the scheme is Roger Dickie (N.Z.) The initial Partnership property will be the land and Treecrop
Limited (the ‘Manager’). Refer to Section 10 - About at Tauwhareparae Road, Tolaga Bay.
Executive Summary
Roger Dickie (N.Z.) Limited and others involved in the
Huntingwood Forest LP of this Product Disclosure Statement At the commencement of the investment, the Manager
intends to ready the Initial Treecrop for harvest. Proceeds
(‘PDS’) for more information.
A PROFITABLE, SUSTAINABLE AND SOCIALLY RESPONSIBLE INVESTMENT from harvest will be used to acquire a Subsequent Property,
BACKED BY LAND OWNERSHIP re-establish the Treecrop on the Initial Property, and
1.3 What are you
Roger Dickie New Zealand Limited (RDNZ)
investing in? establish a new Treecrop on the Subsequent Property for the
one million tonnes of logs per annum. FMNZ provide
specialises in establishing and managing sustainable
sale of Carbon Credits and eventual harvest.
complete operational management services from
General
New Zealand nature
forestry of the
and carbon Partnership establishment through to harvesting. FMNZ adopts
investment
opportunities with a proven track record for best market practice, sources the best Partnership
tree stocks borrowings, and potential future
managing This investment
quality is an offer
forests generating strong ofreturns.
Units in the and Huntingwood
implements stringent quality and borrowings
health & safety
Forest LP, which is registered as a Managed controls.
Investment
RDNZ has established and manages in excess of
Scheme for the purposes
$850 million of New Zealand forestry assets on more
of the Financial Markets Conduct The Partnership has the ability to borrow, and the Manager
With global demand for food and timber increasing,
Act 2013
than 30,000 hectares(‘FMCA’).
for both NewInvestors
Zealand and become limited partners
particularly in developing economieshas sucharranged
as China, a three-year facility with the Bank of New
(‘Partners’)
international investors.in the Partnership by subscribing India for
and Units. Zealandworld
Africa, combined with diminishing (BNZ) which will be drawn until the Initial Treecrop
supply due to the deforestation of tropical forests, theat which time those borrowings will be repaid.
is harvested,
RDNZ isThe Partnership
the investment has specialising
manager been structuredin as a outlook
long-term for forestry investment remains strong.
Borrowings may also be required to fund future obligations,
sourcing,investment
acquiring andinmanaging
forest and
the best land assets
forest and deriving income
carbon opportunities available including greenfield, Investors are discovering the additional however
attributesborrowings
and are not currently forecast beyond the
from harvest proceeds and the sale of carbon credits with
mid rotation and near to harvest forest assets. Invest- diversification that forestry assets can harvest
provide of the Initial Treecrop. The Partnership may borrow
to the
ments area forecast
tailored toinvestment term of
best suit the investors 33 years. However,
criteria. the supplementary to a sustainable and
modern portfolio additional amounts, within the limits set out on page 14,
RDNZ isPartnership
a licensed forest has no fixed
investment term.under
manager This meanssociallythereresponsible
is no setinvestment. Consistent biomass
withoutas wellfurther
as ro- approval of the Partners, as follows:
date Markets
the Financial on which ConductyouAct
will get your investment
2013. back.
growth provides a strong inflation hedge
bust and uncorrelated measures of risk/return relative
• if harvest is deferred, until market conditions improve;
The initialmore
RDNZ, established acquisition
than 40 yearsis aago,near-to-harvest
has a toTreecrop
traditional onasset classes.
proven freehold
track recordland
for sourcing
whereand themanaging
primary highsource of revenue will • to fund any portion of the purchase price of the
quality forests generating exceptional returns to their Growth rates being achieved for softwoods in New
be derived from harvest, forecast
investors. Recently cutover and replanted first rotation to commence in 2022
Zealand are superior to others globally,Subsequent
thanks to the Property that relates to land and/or buildings
forests (the ‘Initial
established by Property’). The majority
RDNZ have achieved between of theall-encompassing
proceeds from the
climate (soil, rainfall & Manager reasonably considers are not needed for
sunshine
7.4% and harvest will be cash
8.8% compound used to reestablish
return, and even the Treecrop
hours) and onattention
the to tree genetics and forestry
tending investment purposes, such as dwellings, farm
greaterInitial
when including
Property, the appreciated
purchasecapital a secondvalue piece of regimes.
land Radiata pine is typically harvested 26 to 28
to establish buildings or land not suitable for forestry purposes; and/or
of replanted land. years after planting and can yield between 750-850m3
a Treecrop on (the ‘Subsequent Property’)perand fund the
hectare of logs in that time. • to purchase other forest lots that neighbour or are
RDNZ has development of thewhen
a wealth of expertise twoanalysing
Treecropsand as required. The two
adjacent to the Initial Property which the Manager
acquiringTreecrops
properties will be managed
for forestry investment. through
As well, to theInvestors
completion of the
are attracted to New Zealand because of our
we engage independent expert consultants to produce stable government, our close proximityconsiders to the fast- are likely to provide access or profitability
next harvest, forecast to commence in 2049. Carbon Credits
feasibilities, cash flow studies, and valuations and have developing Asian markets and our established benefits pro-to the Partnership.
in respect
strong legal, of the
accountancy andSubsequent Property
banking relationships to willfessional
be sold underpractice,
business the ranked amongst the best
current
facilitate onshore Emissions Trading Scheme (‘ETS’) countries
investment requirements. either as they
to do are As well, theAny
business. Newfuture
Zealandborrowings other than those outlined above will
sequestered or subject to the requirements and financial
government is making measurable stepsbe subject
with regardto approval of the Partners by Special Resolution.
RDNZ provides ongoing investment management, for- to environmental sustainability and carbon neutrality,
obligations of the Partnership until the forest reaches its
making forestry a primary focus andShould allowingaease
est operations management and forest administration policy
of or banking condition be at risk of being
services.Carbon
EnsuringAverage Age. (See
that the investment page 11).
is transparent, access for investors. breached, the Manager reserves the right to call on further
fully accountable and measurable by providing de-
Replanting
tailed operational andwill occur
financial following harvesting.RDNZ
reporting. Within
enables sixthe
months
investor to directlycommitments
access the New from the Partnership’s investors in the form of
of the conclusion of harvest of both Treecrops, Zealand Partners will and benefitafrom
forestry market Call.the finan-
Forest Management New Zealand (FMNZ), our for- cial, environmental and socially responsible aspects of
est operations manager, manages more than 90 a sustainable real asset investment in land and trees.
forests across New Zealand and harvest in excess of
Page 1
1.4 Key terms of the offer Your investment in Units in the Partnership can be sold but there
is no established market for trading these financial products. This
means that you may not be able to find a buyer for your investment.
Product offered Units in Huntingwood Forest LP, a Limited Investors wishing to exit the Partnership may transfer their Units to
Partnership.
a Permitted Transferee. Otherwise, they are required firstly to offer
Offeror Roger Dickie (N.Z.) Limited (the Manager of those Units to other existing investors in the Partnership as a pre-
the Partnership) emptive right. If existing Partners do not wish to apply for those
Number of Units The Partnership has 5,280 Units on offer with an Units, then those Units may be made available (at the same price)
and price per Unit initial subscription price of NZ$1,000 per Unit. to other Eligible Investors. The Manager may assist, if requested,
The Manager may make Calls on Partners by facilitating the sale of Units to its wider investor base, known as
for additional amounts (though currently the Secondary Market. If a Partner wishes to sell part of their Units,
none are forecast) and therefore there is no both the transferring Partner and the purchaser must hold at least
fixed total price, or indicative price range, 50 Units after the transfer, except with the Manager’s approval in
for the Units. exceptional circumstances. The investor wishing to exit reserves the
In addition, 220 Units will also be issued to right to govern the price at which it offers Units in the Partnership.
Roger Dickie No. 23 Limited (the ‘Promoter’),
a related party of the Manager. The Promoter
currently holds 1 Unit, which it acquired in its 1.6 Key drivers of returns
capacity as the initial limited partner of the
Partnership. See page 22 for more information The forecast pre-tax Internal Rate of Return (IRR) for the expected
on the Promoter and its Units. life of the investment and without inflation adjustment is 7.2%. See
Minimum NZ $50,000 or 50 Units Section 6 of this PDS for more information.
investment The Manager considers that the current and future aspects of the
Intended offer 18 September 2020 Partnership that have, or may have, the most impact on its financial
opening date performance are;
Executive Summary
Intended offer
closing date
25 September 2020 Land & Treecrop price – The price paid for planted or
plantable land and established Treecrop, and the price
A PROFITABLE,
Payment dates SUSTAINABLE PaymentAND of theSOCIALLY RESPONSIBLE
subscription price is to be INVESTMENTachieved when selling the land and/or Treecrop. In particular,
paid in full immediately on signing of the the price paid for plantable land for the Subsequent Property,
BACKED BY LAND OWNERSHIP application form attached to the PDS. which will be a key determinant of returns;
Roger Dickie New Zealand
Calls or future Limited (RDNZ) one million tonnes
The Partnership has no forecast future Partner of logs per
annum. Logprovide
FMNZ prices – The price received for log or lumber sales at harvest;
specialises in establishing
Partner and managing sustainable complete operational
Calls. However, the Manager has the right to management Growth
services from rates – The volume and quality of the Treecrop, which are
New Zealand forestry and carbon investment establishment through to harvesting. FMNZ adopts
largely determined by site specific factors (climate, soil and rainfall);
contributions call on Partners for further contributions, based
opportunities with a proven track record for best market practice, sources the best tree stocks
on the capital requirements of the Partnership, Carbon Credits earned and sold – The number of Carbon
managing quality forests generating strong returns. and implements stringent quality and health & safety
where the Manager determines the Call is inside
controls. Credits earned and the price achieved for Carbon Credit sales
the Ordinary
RDNZ has established and manages in excess of Course Of Business (including Calls for the Subsequent Property including legislation;
madeassets
$850 million of New Zealand forestry whereonamore
policy or banking condition
With global demandis atfor food and timber Costs – Costs associated with the operational management
increasing,
than 30,000 hectares for both New riskZealand
of beingand
breached, as outlined in Section
particularly in developing economies suchand as China,
harvesting of land and tree crop;
international investors. 4 Terms of the Offer). ThisIndia
meansandyou maycombined
Africa, be with diminishing world
Location – Proximity of the Initial and Subsequent Properties
required to contribute amountssupplyindueexcess
to theofdeforestation
the of tropical forests, the
RDNZ is the investment manager investor
specialising in outlook for There
forestryisinvestment to export ports and domestic processing. The Initial Property is
remains strong.
commitments noted above. no
sourcing, acquiring and managingfixed
the best forest and
total price for the Units. within 75km of Gisborne port, but the Subsequent Property’s
carbon opportunities available including greenfield, proximity
Investors are discovering the additional attributes andto this type of infrastructure will not be known until
Calls that
mid rotation and near to harvest forest areInvest-
assets. outside thediversification
Ordinary Course thatOf
forestry assets can provide
that to the
property is identified by the Manager. The Manager’s
ments are tailored to best suit theBusiness
investorsmay only be made
criteria. with portfolio
modern the approval
supplementary to a sustainable and
of the Partners by Specialsocially
Resolution. criteria for identifying and acquiring the Subsequent Property
RDNZ is a licensed forest investment manager under responsible investment. Consistent biomass
the Financial Markets Conduct ActFailure
2013. to pay any Partner commitment
growth provides will include reasonable proximity to export ports and domestic
oraCall
strong inflation hedge as well as ro-
bust and uncorrelated measures of risk/return woodrelative
processing facilities.
would put the Partner in default and subject to
RDNZ, established more than 40 years ago, has a to traditional asset classes.
payment of interest and forfeiture of their Units
proven track record for sourcing and managing high The Manager’s investment philosophy and investment objectives
and loss
quality forests generating exceptional of voting
returns to theirrights under
Growththerates
Partnership’s are to establish,
being achieved for softwoods in New manage and harvest the forest assets to ensure
Governing
investors. Recently cutover and replanted firstDocuments
rotation (the Deed of
Zealand areScheme maximum
superior to others globally, thanks toreturn
the to Partners at harvest while minimising exposure
forests established by RDNZ haveManagement
achieved between and Deed ofall-encompassing
Limited Partnership).
climate (soil, rainfall
to &investment
sunshine risk. An independent valuer and an independent
7.4% and 8.8% compound cash return, and even hours) and attention to tree genetics and tending
Minimum offer Units will not be issued unless applications for forest consultant provide further expertise and independence
greater when including the appreciated capital value regimes. Radiata pine is typically harvested 26 to 28
amount and
of replanted land.
at least 100 Units are received (representing when forecasting
years after planting and can yield between 750-850m3 the future performance of the Partnership.
underwrite $100,000 of investor commitments). Thein220
per hectare of logs that time.
RDNZ has a wealth of expertise when Units to be and
analysing issued to the Promoter do not Further information about the key drivers of returns and the key
count towards
acquiring properties for forestry investment. As well,this minimum.
Investors are attracted to New Zealand because of ourplans of the Manager in respect of those drivers
strategies and
we engage independent expert consultants to produce
If applications stable
for at least 100government,
Units but ourlessclose proximity to the fast-
feasibilities, cash flow studies, andthan
valuations
may be found in Section 2.1e of this PDS.
5,280and haveare received,
Units developingthe Asian markets and our established pro-
shortfall
strong legal, accountancy and banking relationships to fessional business practice, ranked amongst the best
will be underwritten by the Underwriter.
facilitate onshore investment requirements.
Further details For further details on the terms of isthe
government 1.7 Huntingwood Forest LP’s financial
countries to do business. As well, the New Zealand
offer,measurable steps with regard
making
RDNZ provides ongoing investment see Section 4 –for-
management,
est operations management and forest administration
Terms oftothe offer
environmental
information
sustainability and carbon neutrality,
making forestry a primary focus and allowing ease of
services. Ensuring that the investment is transparent, access for investors.
fully accountable and measurable by providing de- The Initial Treecrop is forecast to commence harvest in 2022. The
1.5 How you can get your money out
tailed operational and financial reporting. RDNZ enables the investor to directly revenue from
access the New harvest will be used to re-establish the Treecrop on
Zealand forestry market and benefitthe from the finan-
Initial Property, and to purchase and establish a Treecrop on
Forest Management New Zealand (FMNZ), our for- cial, environmental and socially responsible aspects of
Units in the Partnership are not redeemable. An
est operations manager, manages more than 90
investor has no right a Subsequent Property that will generate income from the sale of
a sustainable real asset investment in land and trees.
to receive back any amount invested
forests across New Zealand and harvest in excess of in respect of Units, except in carbon, typically when that Treecrop is between the ages of 3 and 20.
circumstances where the Partnership is being wound up and funds The primary returns are expected to begin in 2049 when the second
are available for that purpose. harvest of the Initial Property and the first harvest of the Subsequent
Property is forecast to commence. Any revenues the Manager
considers are surplus to requirements will be distributed to Partners.
Page 2
1.8 Key risks of this investment
Gearing ratio and interest cover ratio
The gearing ratio tells you how much the Partnership has borrowed Investments in managed investment schemes are risky. You should
(debt) as a portion of what it owns (assets). At settlement the consider whether the degree of uncertainty about the Partnership’s
investment will have borrowings, those borrowings will be repaid future performance and returns is suitable for you. The price of
from the harvest of the Initial Treecrop. Units in the Partnership should reflect the potential returns and
the particular risks of those Units in the Partnership. The Manager
The interest cover ratio measures by how much the net income considers that the most significant risk factors that could affect the
exceeds interest obligations on the Partnership’s loans. The value of Units in the Partnership are:
revenue generated prior to harvest is expected to be negligible,
making the interest cover ratio negative and of less relevance Key Risks of this Investment
(as, during that period, interest payments will be funded by
Market risks – The risk associated with changes in supply and
cash received from subscription amounts). log markets demand for pine sawlogs which affects log
Gearing ratio Interest cover ratio prices. The log price for all log grades is set by log
exporters each month. If demand for New Zealand
At settlement At settlement Radiata pine logs was lower, then there would
of property 15.92% of property be a lower log price for all harvesting forests,
NA
(30 September 2020) (30 September 2020) including the Partnership’s forests. A reduction
Period ending Period ending in log price will influence the profitability of
17.68% -2.18 the investment. Two possible risks affecting log
28 February 2021 28 February 2021
prices are the events of Covid-19 (and a possible
Period ending Period ending resulting short-term weakening of demand for
11.56% -3.95
28 February 2022 28 February 2022 logs) and the supply of salvaged European Spruce
from windstorms and the Spruce Bark Beetle
into markets where New Zealand predominantly
Further information on how these amounts are calculated exports. If log prices decreased 10%, the Internal
Executive Summary
can be found in Section 6 – Huntingwood Forest LP’s
financial information
Market risks
Rate of Return would drop from 7.2% to 4.7%.
The risks associated with the ETS, changes to
– Emissions legislation relating to the ETS, and Carbon Credit
A PROFITABLE, SUSTAINABLE
Forecast financial informationAND SOCIALLY
included in thisRESPONSIBLE
PDS has been INVESTMENT
Trading prices. The Partnership is forecast to sell Carbon
BACKED BY LAND
extracted fromOWNERSHIP
financial statements prepared in accordance Scheme (ETS) Credits in relation to the Subsequent Property.
with FRS-42 (Financial Reporting Standard 42) Prospective If the market changed or ceased to exist then
Roger Dickie New Zealand Limited (RDNZ)
Financial Statements. These are available onone
specialises in establishing and managing sustainable
the million tonnes of logs per annum. FMNZ provide
Offer Register.
complete operational management services from
there is a risk to returns from the investment. If
there was no market to sell Carbon Credits (i.e.
New Zealand forestry and carbon investment establishment through to harvesting. FMNZ adopts
legislation changes) then the Internal Rate of
Valuation
opportunities of land
with a proven trackand forest
record for assets best market practice, sources the best tree stocks
Return would reduce from 7.2% to 4.8%.
managing quality forests generating strong returns. and implements stringent quality and health & safety
The land and Treecrop on the Initial Property have been valued
controls. Market risks – The risk that a suitable and quality greenfield
by independent consultants,
RDNZ has established and manages in excess of namely Logan Stone Limited (‘Logan
Identification forest property could not be identified and/or
Stone’)
$850 million and Zealand
of New PF Olsen Limited
forestry (‘PFonOlsen’),
assets more respectively.
With globalThe demand for food and timber andincreasing, acquired as the Subsequent Property within the
valuation
than 30,000 of the
hectares landNew
for both andZealand
improvements
and supplied by Logan
particularly Stone economies Acquisition
in developing such as China,
of desired timeframe, being during the harvest of the
international
as at 29investors.
July 2020 is $765,000 (plus GST, if any)India based and onAfrica, combined with diminishing world
a ‘Sales Subsequent
supply due to the deforestation of tropical forests, the Initial Property through to 24 months following the
Comparison’ approach. The valuation of the Treecrop supplied by Property harvest of the Initial Property.
RDNZ is the investment manager specialising in outlook for forestry investment remains strong.
sourcing,PFacquiring
Olsen asand at managing
6 Augustthe 2020bestisforest
$6,040,000
and (plus GST, if any) based
Crop risks The risk of unfavourable factors affecting the tree
carbon on an ‘Income
opportunities (Discounted
available includingCash Flow – DCF)’ Investors
greenfield, approach. are discovering the additional attributes and crop. These factors can include
mid rotation and near to harvest forest assets. Invest- diversification that forestry assets can provide to the
climate, disease, windthrow, fire, erosion, site
ments are tailored to best suit the investors criteria. Valuation Percentage
modern portfolio of
supplementary to a sustainable and
RDNZ is a licensed forest investment manager contamination, and natural disasters such as
Area under socially responsible
(market investment. Consistent biomass
total market storms. The Initial Property contains approximately
Property
the Financial asset
Markets Conduct Act 2013. growth provides a strong inflation hedge as well as ro-
(hectares) value) value 169 hectares of land classified as having a very
bust and uncorrelated measures of risk/return relative
August 2020 August 2020 high erosion risk.
RDNZ, established more than 40 years ago, has a to traditional asset classes.
proven track recordland
Forestry for sourcing
& and managing high
Risks The risk that a Call needs to be made and that one
quality forests generating exceptional331.556
improvements returns to their $765,000 Growth rates 11.24%being achieved for softwoods in New
investors.(Logan
Recently cutover and replanted first rotation Zealand are superior to others associated
globally, thanks to the or more Partners fails to pay the Call, impacting
Stone)
forests established by RDNZ have achieved between all-encompassing climate (soil, rainfallwith Calls
& sunshine returns (either for a defaulting Partner or for
7.4% andTreecrop (PF Olsen)
8.8% compound cash return,228.40
and even 6,040,000 88.76%to tree genetics and tending
hours) and attention all Partners, if the non-payment affects the
greater when including the appreciated capital value regimes. Radiata pine is typically harvested 26 to 28 Partnership’s ability to continue). Calls are not
of replanted land. 331.556 Land years after planting and can yield between 750-850m3 forecast to be required.
& Tree Crop per hectare of logs in that time.
RDNZ hasTotal valuation $6,805,000 100% Operational The risk that the operational cost of managing
a wealth of expertise when 228.40
analysingNetand
acquiring properties for forestry investment. As well, Investors are attracted to New Zealandrisks
because of our and harvesting forests increases, including due to
Stocked Area
we engage independent expert consultants to produce stable government, our close proximity to the fast- compliance, inflation, and taxation changes.
feasibilities, cash flow studies,
The Subsequent and valuations
Property has notand yethave developingand
been identified, Asian markets and our established
will pro-
Counterparty The risk that service providers and related parties
strong legal, accountancy and banking relationships to fessional business practice, ranked amongst the best
not be acquired until during or following the harvest of the Initial risks will fail to perform their services or make good on
facilitate onshore investment requirements. countries to do business. As well, the New Zealand
Treecrop. Accordingly, valuation information for that landis and
government making measurable steps with regard
contractual obligations.
Treecrop
RDNZ provides (including
ongoing independent
investment management, valuations)
for- istonot currently sustainability and carbon
environmental neutrality,
Interest The interest rate applied to Partnership borrowings
available.
est operations The Manager
management intends
and forest to obtain independent
administration making forestry valuations
a primary focus and allowing
rate and ease of may be subject to change depending on the
services.toEnsuring
supportthat thethevaluation
investment theis transparent,
Manager places on accessthefor investors.
Subsequent refinancing borrowing facility held with BNZ or other registered
fully accountable and measurable by providing de-
Property at the time of acquisition, and valuation
tailed operational and financial reporting.
information risk
RDNZ enables the investor to directly access the New
banks. In addition, should the Partnership need to
will be made available to Partners at that time.Zealand Moreforestry
information
market and benefit from the finan- refinance, or to borrow additional amounts, the
on the key features
Forest Management New Zealandof the Subsequent
(FMNZ), our for- Property cial,isenvironmental
set out in theand socially responsible aspects of terms of refinancing may vary, or the availability of
statement
est operations of investment
manager, manages more policy
thanand90 objectivesa for the Partnership.
sustainable real asset investment in land and trees. money may cease.
forests across New Zealand and harvest in excess of
Further information about the valuation of land and forest assets This summary does not cover all of the risks. You should also
can befound in Section 2 – Acquisition of key partnership property. read Section 7 – Risks to returns from the Huntingwood Forest
LP and other parts in this PDS that describe risk factors.
Page 3
1.9 What fees will you pay?
The table below summarises the fees and expenses that you will be charged to invest in the Partnership. Further information about fees,
including fees expected to be incurred in connection with the acquisition of the Subsequent Property, is set out in Section 8 – What are the
fees? The fees in the table are estimates of fees (exclusive of GST) to be charged to set-up and manage the Partnership on an ongoing basis in
the periods indicated and actual fees and expenses may vary from those estimates.
Set-Up Fees and Expenses
Period to Percentage of
Manager and Associated Persons Set Up Fees and Expenses
28 February 2021 Scheme Net Assets
Offeror/Establishment Fee $264,000 3.88%
Brokerage Fee $105,600 1.55%
Underwriters Fee $0 0.00%
Marketing Expenses $30,000 0.44%
Establishment Fee (Subsequent Property) Forecast FY 2024
$180,000 2.65%
(5% of purchase price) (Estimate only)
Manager and Associated Persons Total Set up Fees and Expenses $579,600 8.52%
Other Person Fees & Expenses
Legal Fees - Initial Set-up $90,000 1.32%
Supervisor $6,000 0.09%
Scheme Registration & FMA Levy $6,000 0.09%
Assurance Fee - Independent Consultant Feasibility (Estimate Only) $25,000 0.37%
Assurance Fee - Independent Land Valuation (Estimate Only) $5,000 0.07%
Executive Summary
Assurance Fee - Independent Treecrop Valuation (Estimate Only) $5,000 0.07%
Assurance Fee – Audit and Accounting (Estimate Only) $12,000 0.18%
Bank Fees - Facility and Legal (Estimate Only) $7,000 0.10%
A PROFITABLE, SUSTAINABLE AND SOCIALLY RESPONSIBLE INVESTMENT
Establishment Contingency $15,000 0.22%
BACKED
LegalBY
FeesLAND OWNERSHIP
– (Subsequent Property) Forecast FY 2024 (Estimate Only) $30,000 0.44%
Assurance
Roger Dickie Fee - Independent
New Zealand Consultant Feasibility (Subsequent
Limited (RDNZ) one millionProperty)
tonnes of logs per annum. FMNZ provide
$20,000 0.29%
Forecast
specialises FY 2024 (Estimate
in establishing Only) sustainable
and managing complete operational management services from
New Zealand forestry and carbon investment establishment
Assurance Fee - Independent Land & Treecrop Valuation (Subsequent through to harvesting. FMNZ adopts
opportunities withForecast
a proven $5,000 0.07%
Property) FYtrack
2024 record forOnly)
(Estimate best market practice, sources the best tree stocks
managing quality forests generating strong returns. and implements stringent quality and health & safety
Other Person Aggregate Set Up Fees and Expenses $226,000 3.32%
controls.
RDNZ has established
Total andand
Set Up Fees manages
Expenses in excess of $805,600 11.83%
$850 million of New Zealand forestry assets on more With global demand for food and timber increasing,
than 30,000 hectares for both New Zealand and particularlyOngoing Partnership
in developing Fees and
economies Expenses
such as China,
international investors. India and Africa, combined with diminishing
Period to world Percentage of Period to Percentage of
Manager and Associated Persons Ongoing Partnership Feesdue
supply andtoExpenses
the deforestation28ofFebruary
tropical forests,
2021 theScheme Net Assets 28 February 2022 Scheme Net Assets
RDNZ is Forest
the investment manager specialising
Management Fee (Estimate Only) in outlook for forestry investment remains strong.
$2,821 0.04% $12,671 0.19%
sourcing, acquiring and managing the best forest and
Property Maintenance & Protection
carbon opportunities available including greenfield,Expense (Estimate Only) $1,428
Investors are discovering the additional attributes and 0.02% $3,426 0.05%
mid rotation and near to
Administration & harvest forest
Investment assets. Invest-
Management diversification
Fee (Estimate Only) that forestry assets can provide to the
$9,331 0.14% $28,865 0.42%
ments are tailored to best suit the investors criteria. modern portfolio supplementary to a sustainable and
RDNZ is Manager
a licensedNon-Harvest Incomemanager
forest investment Fee (Estimate
under Only) socially responsible investment. Consistent $1,013 biomass 0.01% $3,375 0.05%
the Financial Markets Conduct Act 2013.
Disbursements growth provides a strong inflation hedge $0 as well as ro- 0.00% $0 0.00%
Manager and Associated Persons Aggregate Ongoing Partnership bust and uncorrelated measures of risk/return
Fees and Expenses $14,593 relative 0.21% $48,337 0.71%
RDNZ, established more than 40 years ago, has a to traditional asset classes.
Otherrecord
proven track Person forOngoing
sourcingPartnership
and managing Feeshigh
and Expenses
quality forests generating
Forestry Expenditure exceptional
(Planting,returns to their
Silviculture, Growth
Pest Control, rates being achieved for softwoods in New
Roading,
$5,000 0.07% $130,000 1.91%
investors. Recently
Harvest cutoverMaintenance
Planning, and replanted etc)first rotationOnly) Zealand are superior to others globally, thanks to the
(Estimate
forests established by RDNZ have achieved between
Insurance - Fire & Public Liability (Estimate Only) all-encompassing climate (soil, rainfall & sunshine
$9,421 0.14% $23,426 0,34%
7.4% and 8.8% compound cash return, and even hours) and attention to tree genetics and tending
Accounting and Audit (Estimate Only)
greater when including the appreciated capital value $0
regimes. Radiata pine is typically harvested 26 to 28 0.00% $5,000 0.07%
of replanted land.
Supervisor years after planting and can yield between $0 750-850m3 0.00% $1,500 0.02%
per hectare of logs in that time.
Council Rates & Levies (Estimate Only) $3,600 0.05% $8,600 0.13%
RDNZ has a wealth of expertise when analysing and
acquiringRegulatory
propertiesFees
for forestry investment. As well, Investors are attracted to New Zealand$0 because of our 0.00% $450 0.01%
we engage independent
Interest Charged expert consultants
(Estimate Only) to produce stable government, our close proximity to the fast-
$24,397 0.36% $40,000 0.59%
feasibilities, cash flow studies, and valuations and have developing Asian markets and our established pro-
Other Person Aggregate Ongoing Partnership
strong legal, accountancy and banking relationships to Fees and Expenses $42,418
fessional business practice, ranked amongst the best 0.62% $208,976 3.07%
facilitateTotal
onshore investment
Ongoing requirements.
Partnership Fees and Expenses countries to do business. As well, the New Zealand
$57,011 0.84% $257,313 3.78%
government is making measurable steps with regard
Period to Percentage of Period to Percentage of
Total Fees
RDNZ provides and Expenses
ongoing investment management, for- to environmental sustainability and carbon neutrality,
28 February 2021 Scheme Net Assets 28 February 2022 Scheme Net Assets
est operations management and forest administration making forestry a primary focus and allowing ease of
services.Total Manager
Ensuring that and Associated Person
the investment Fees
is transparent, access for investors. $414,193 6.16% $48,337 0.17%
fully accountable and
Total Other measurable
Person byExpenses
Fees and providing de- $213,418 3.14 208,976 3.07%
tailed operational and financial reporting. RDNZ enables the investor to directly access the New
Total Fees and Expenses $627,611 9.30% 257,313 3.78%
Zealand forestry market and benefit from the finan-
Forest Management New Zealand (FMNZ), our for- cial, environmental and socially responsible aspects of
1.10 How will your investment be taxed?
est operations manager, manages more than 90
forests across New Zealand and harvest in excess of
a sustainable real asset investment in land and trees.
The Scheme is not a portfolio investment entity (PIE). For more information see Section 9 -TAX.
Page 4
Table of contents
1. Key information summary 1
2. What Huntingwood Forest LP invests in 7
3. Key dates and offer process 15
4. Terms of the offer 16
5. How the Huntingwood Forest LP works 19
6. Huntingwood Forest LP’s financial information 23
7. Risks to returns from the Huntingwood Forest LP 33
8. What are the fees? 36
9. Tax 42
10. About Roger Dickie (N.Z.) Limited
and others involved in the Huntingwood Forest LP 43
11. How to complain 47
12. Where you can find more information 48
13. How to apply 49
Glossary of terms 50
APPLICATION FORM
Letter from the Manager
September 2020
Dear Investor,
We, Roger Dickie (N.Z.) Limited, have negotiated the purchase of six forest lots in the Tolaga Bay area of Gisborne,
comprising 331.5 hectares of freehold land with approximately 228 hectares of near-to-harvest Treecrop, known as the
Initial Property of this forest Investment. The Treecrop will be harvested and the proceeds used to acquire a Subsequent
Property, with any remaining funds following forest establishment and providing for forecast ongoing management costs to
be distributed to partners. The Subsequent Property will be a greenfield property with the ability to sell sequestered carbon
as a participant in the New Zealand Emissions Trading Scheme. Huntingwood will then comprise two forest properties
which will be carried through to harvest, forecast to commence in 2049.
Investors in the scheme will have the opportunity to participate, as limited partners, in this long-term investment. We
intend to open the offer on 18 September 2020, with settlement of the property to take place on 30 September 2020.
Executive Summary
Huntingwood Forest LP will have the key advantage of multiple harvests over multiple time periods as well as the sale of
Carbon Credits (NZUs) sequestered by the Treecrop on the Subsequent Property. The early income from the harvest of the
A PROFITABLE, SUSTAINABLE
mature Treecrop and sale of AND SOCIALLY
NZUs RESPONSIBLE
means that there are no INVESTMENT
forecast calls throughout the expected life of the investment
BACKED BY LAND
beyond OWNERSHIP
the investor’s initial investment. The Limited Partnership structure will allow investors to take part in this
sustainable,
Roger Dickie New Zealand long term(RDNZ)
Limited investment while limiting
one million their liability
tonnes to annum.
of logs per their contributions
FMNZ provide paid.
specialises in establishing and managing sustainable complete operational management services from
New Zealand forestry and carbon investment
The forestry sector is experiencing strongestablishment demand asthrough to harvesting. FMNZ adopts
New Zealand and the world look for initiatives to help offset carbon
opportunities with a proven track record for best market practice, sources the best tree stocks
managing emissions andgenerating
quality forests fulfil their commitments
strong returns. under the Parisstringent
and implements Agreement. Growing
quality and health & world
safety population, economic growth and
environmental and energy policies are, incontrols. our view, all drivers for global wood demand. We see New Zealand as being well
RDNZ has established and manages in excess of
equipped
$850 million of Newto take forestry
Zealand advantage
assetsof
on this
moreincreasing demand
With global demandwith our and
for food welltimber
located, fast growing and sustainable forest industry.
increasing,
than 30,000 hectares for both New Zealand and particularly in developing economies such as China,
We are
international pleased to be offering what we believe
investors. India andtoAfrica,
be acombined
premium withmulti-property
diminishing world forest investment opportunity. We manage
supply due to the deforestation of tropical forests, the
RDNZ isover 30,000 hectares
the investment of forestin and land assets
manager specialising outlookforfor more
forestrythan 2,500remains
investment investors
strong.with a total value in excess of $1.0 billion.
sourcing, acquiring and managing the best forest and
carbon Minimum
opportunitiesinvestment in the
available including HuntingwoodInvestors
greenfield, Forestare LPdiscovering
starts from $50,000attributes
the additional and increases
and in $1,000 units thereafter.
mid rotation and near to harvest forest assets. Invest- diversification that forestry assets can provide to the
ments are tailored to best suit the investors criteria. modern portfolio supplementary to a sustainable and
RDNZ isThis PDS forest
a licensed contains important
investment managerinformation
under about the Huntingwood
socially responsible investment. Forest LPbiomass
Consistent and the offer. We encourage you to read this
PDS carefully
the Financial and give
Markets Conduct consideration and where
Act 2013. necessary,
growth provides a strongseek advice,
inflation hedgebefore making
as well as ro- your investment decision.
bust and uncorrelated measures of risk/return relative
RDNZ, established more than 40 years ago, has a to traditional asset classes.
proven Wetracklook
recordforward to and
for sourcing youmanaging
joininghigh
us in Huntingwood Forest LP and meeting and hosting you at the first Partnership AGM.
quality forests generating exceptional returns to their Growth rates being achieved for softwoods in New
investors. Recently cutover and replanted first rotation Zealand are superior to others globally, thanks to the
forests established by RDNZ have achieved between all-encompassing climate (soil, rainfall & sunshine
7.4% and 8.8% compound cash return, and even hours) and attention to tree genetics and tending
greaterWarm Regards,
when including the appreciated capital value regimes. Radiata pine is typically harvested 26 to 28
of replanted land. years after planting and can yield between 750-850m3
per hectare of logs in that time.
RDNZ has Roger Dickie
a wealth (N.Z.) when
of expertise Limited, manager
analysing and of the Huntingwood Forest LP
acquiring properties for forestry investment. As well, Investors are attracted to New Zealand because of our
we engage independent expert consultants to produce stable government, our close proximity to the fast-
feasibilities, cash flow studies, and valuations and have developing Asian markets and our established pro-
strong legal, accountancy and banking relationships to fessional business practice, ranked amongst the best
facilitate onshore investment requirements. countries to do business. As well, the New Zealand
government is making measurable steps with regard
RDNZ provides ongoing investment management, for- to environmental sustainability and carbon neutrality,
est operations management and forest administration making forestry a primary focus and allowing ease of
services. Ensuring that the investment is transparent, access for investors.
fully accountable and measurable by providing de-
tailed operational and financial reporting. RDNZ enables the investor to directly access the New
Zealand forestry market and benefit from the finan-
Forest Management New Zealand (FMNZ), our for- cial, environmental and socially responsible aspects of
est operations manager, manages more than 90 a sustainable real asset investment in land and trees.
Roger
forests across New Zealand and harvest in excess of
Dickie Will Dickie Jeff Dickie
Page 6
2. What the Investment strategy of the Partnership
Huntingwood Forest LP
The principal investment policy and objectives and strategy
of the Partnership are to invest, in the Ordinary Course
invests in
Of Business, in real property and other assets in order to
manage forests with the intention of earning a return on
the investment through harvesting the trees, trading of
Carbon Credits (in respect of the Subsequent Property),
2.1 Key features of the Partnership selling forestry rights, or selling land used in forestry
activity. Accordingly, the Manager’s investment philosophy
2.1a Statement of investment policy and objectives and investment objective for the Partnership is to establish a
(SIPO) Treecrop on the Subsequent Property and manage the forests
described in this PDS to ensure maximum return to Partners at
The Manager has adopted a SIPO for the Partnership which harvest while minimising exposure to investment risk.
sets out the policies, objectives and investment strategies in
respect of the Partnership, including the Initial Property, the 2.1b Description of property of the Partnership
Subsequent Property, and the Treecrop established on each.
A copy of the SIPO is available on the scheme register at The Initial Property
www.disclose-register.companiesoffice.govt.nz by searching
for ‘Huntingwood Forest LP’ under “search schemes”. The Partnership will initially invest in six individual forest
lots comprising 331.556 hectares of land with a Net Stocked
The SIPO may be amended by the Manager following Area (NSA) of 228.4 hectares of near-to-harvest (planted in
consultation with the Supervisor (Covenant Trustee Services 1995 and 1996) Treecrop located at Tauwhareparae Road,
Executive Summary
Limited). An amendment that is considered material by the Tolaga Bay, Gisborne. The property is located 75kms north of
Manager and/or the Supervisor will require Partners to be Gisborne port, the primary market for log sales.
given at least one month’s notice prior to implementation.
A PROFITABLE, SUSTAINABLE AND SOCIALLY RESPONSIBLE INVESTMENT The six forest lots form part of a larger forest property
Such material changes will include anything that alters the known as Treloch, five of the lots being contiguous and the
BACKED BY LAND
general OWNERSHIP
investment philosophy of the Partnership or nature sixth being situated a short distance to the North West of
of the
Roger Dickie Newinvestment. However,
Zealand Limited (RDNZ) if any changeone tomillion
the SIPO
tonnes would
of logs per annum.theFMNZ
contiguous
provide area. The surrounding lots within the forest
alsoinamount
specialises toand
establishing a change
managingto the ‘business’complete
sustainable operational management are
of the Partnership owned
services from by separate entities and the sixth (individual) lot
New Zealand forestry in
(as defined andthe
carbon investmentDocuments -establishment
Governing for example, through
anyto harvesting.isFMNZ adopts with other lots owned by another Roger Dickie
contiguous
opportunities with a proven track record for best market practice, sources the best tree stocks
managing proposal to use
quality forests the Partnership’s
generating strong returns.land forand
purposes
implementsother
stringent quality and(N.Z.)
healthLtd managed forest partnership.
& safety
than forestry-related purposes), it must also be approved by
controls.
RDNZ has a Special Resolution
established and manages ofinthe Partnership.
excess of Refer to Section 5 – The land ranges in altitude from 140 to 380 meters above
$850 million
HowofHuntingwood
New Zealand forestry
Forestassets
LPon more for further
works With global demand for food and timber
information sea level with predominantly medium to steeper hills with
increasing,
than 30,000 hectares for both New Zealand and particularly in developing economies such as China,
on the
international limited partner decision making rights,
investors. setAfrica,
India and out in the with diminishing world draining soils that are susceptible to erosion. The
combined
largely free
Governing Documents. area has
supply due to the deforestation of tropical high
forests, therainfall and overall the property has a good
RDNZ is the investment manager specialising in outlook for forestry investment remains Site-Index
strong. and 300-Index which provide for strong forecast
sourcing,The SIPO and
acquiring describes
managingthe
the allowable assets held by the
best forest and log volumes.
carbon opportunities available including greenfield, Investors are discovering the additional attributes and
Partnership, being any assets resulting
mid rotation and near to harvest forest assets. Invest-
from the Partnership’s
diversification that forestry assets can provide to the
ments are‘business’,
tailored to including:
best suit the investors criteria. modern portfolio supplementary to The forest lots
a sustainable and contain forest tracks but there is no
RDNZ is a licensed forest investment manager under established
socially responsible investment. Consistent biomassharvest infrastructure such as roading. The lots
The
the Financial land
Markets described
Conduct in this PDS and Treecrop
Act 2013. on thea strong
growth provides do not
land;inflation hedge directly
as well as ro- access Tauwhareparae Road, but the lots have
Logs, lumber and wood biproducts stored bust andoruncorrelated
in transit;measures of risk/return
right of way relative
easements allowing construction of roading
RDNZ, established more than 40 years ago, has a to traditional asset classes.
Cash deposits held with
proven track record for sourcing and managing highregistered New Zealand banks to access forest roads. Provisions have been made for the
quality forestsand other exceptional
generating fixed interest
returnssecurities;
to their roading
Growth rates being achieved for softwoods costs, of which costs will be shared and determined
in New
ETS units;
Recently
investors. cutover and replanted first rotation Zealand are superior to others globally,by each
thanks individual
to the lot’s percentage of usage.
forests established by RDNZ have achieved between
Any other assets which relate directlyall-encompassing
to, or arise from,climate (soil, rainfall & sunshine
7.4% and 8.8% compound cash return, and even hours) and attention to tree genetics and tending
greater wheninvestment and ownership
including the appreciated in that land
capital value and Treecrops.
regimes. Radiata pine is typically harvested 26 to 28
of replanted For
land.example, any improvements or existing dwellings
years after planting and can yield between 750-850m3
on the land, selling forestry rights or selling land
per hectare used
of logs in time.
in that
RDNZ has a wealth of expertise when analysing and
forestry activity.
acquiring properties for forestry investment. As well, Investors are attracted to New Zealand because of our
we engage independent expert consultants to produce stable government, our close proximity to the fast-
feasibilities, cash flow studies, and valuations and have developing Asian markets and our established pro-
strong legal, accountancy and banking relationships to fessional business practice, ranked amongst the best
facilitate onshore investment requirements. countries to do business. As well, the New Zealand
government is making measurable steps with regard
RDNZ provides ongoing investment management, for- to environmental sustainability and carbon neutrality,
est operations management and forest administration making forestry a primary focus and allowing ease of
services. Ensuring that the investment is transparent, access for investors.
fully accountable and measurable by providing de-
tailed operational and financial reporting. RDNZ enables the investor to directly access the New
Zealand forestry market and benefit from the finan-
Forest Management New Zealand (FMNZ), our for- cial, environmental and socially responsible aspects of
est operations manager, manages more than 90 a sustainable real asset investment in land and trees.
forests across New Zealand and harvest in excess of
Page 7
Huntingwood Property Map
2046000 2047000 2048000 2049000
5748000
5749000
Stableford Forest
5747000
Lot 2
P.Rad-17.4 ha
Gross:19.63 ha
2046000
Stableford Forest
Estimated Net Stocked Area: 228.4 Hectares
2050000
Huntingwood
TAUW
HAR E
5746000
PARAE
ROAD
5747000
5745000
Lot 4
P.Rad-57.97 ha
Gross 65.01 ha
Huntingwood 5746000
Lot 7
P.Rad-38.5 ha
Gross 79.73 ha
Lot 5
P.Rad-60.17 ha
Gross 65.05 ha
2047000
Lot 8
P.Rad-29.8 ha
2051000
Gross 39.43 ha
Lot 9
5745000
P.Rad-24.69 ha
Gross 62.33 ha
WES
T
HO R
OAD
2048000 2049000 2050000 2051000
Huntingwood Proposed Lots
Huntingwood Proposed Lots (White Line)
State Highway
Roads
RDNZ - Stableford Forest Partnership 0 300 600 1,200 m
´
All areas in hectares 1:15,500
Page 8
Legal descriptions (area and title) of the freehold land business which handles the entire range of administrative
services for forests under management. Will is also involved
Title with new initiatives and marketing and handles engagement
Description Area (ha)
Identifier with the regulatory authorities, namely the Financial
Markets Authority (FMA). Will’s bio is on page 44.
Lot 4 Deposited Plan 8756 GS6A/390 65.0180 ha
Lot 5 Deposited Plan 8756 GS6A/391 65.0570 ha Other entities responsible in the management process
Lot 7 Deposited Plan 8756 GS6A/393 79.7370 ha
The Manager contracts out the day-to-day management
Lot 8 Deposited Plan 8756 GS6A/394 39.4390 ha of the forest operations from establishment through to
Lot 9 Deposited Plan 8756 GS6A/395 62.3360 ha harvesting and replanting to Forest Management (NZ)
Ltd (‘FMNZ’), a related party of the Manager. FMNZ has
Lot 2 Deposited Plan 8977 GS6B/131 19.9690 ha been involved in forest management for over 50 years and
Total Land Area 331.5560 ha presently manages over 30,000ha of radiata pine forest.
FMNZ has joint CEOs of Sally Sisson and Steve Bell. Both Sally
The Subsequent Property and Steve have been with FMNZ for more than 25 years.
The Subsequent Property is yet to be determined for For more information on the Manager and FMNZ please
purchase. Once harvest of the Initial Treecrop is nearing refer to Section 10 – About Roger Dickie (N.Z.) Limited and
completion, the Manager intends to acquire the Subsequent others involved in Huntingwood Forest LP.
Property for the Partnership, which is to be established in
radiata pine for the sequestration and sale of carbon and the 2.1d Purpose of the offer and how money raised will
be used
Executive Summary
eventual harvest of the Treecrop.
The Subsequent Property is estimated to contain 400 An entity associated with the Manager, has an unconditional
sale & purchase agreement to acquire the six forest lots,
A PROFITABLE,
hectares ofSUSTAINABLE
plantable land, AND SOCIALLY
although RESPONSIBLE
this land area may INVESTMENT including land and Treecrop, at Tauwhareparae Road (refer
change based on the availability of land, the price of land,
BACKED BY LAND OWNERSHIP
and the availability of funds from the harvest of the Initial Section 2.1 - Description of key property of the Partnership)
Property.
Roger Dickie The independent
New Zealand Limited (RDNZ) forest consultant has based
one million tonnes the
for a purchase price of $5,197,000 plus GST (if any) made
of logs per annum. FMNZ provide
purchase of the Subsequent Property in the PFI on typical
specialises in establishing and managing sustainable complete operational management up of $905,000
services from of land & improvements, and $4,292,000
New Zealand forestry and carbon investment
properties suitable for afforestation in theestablishment
Hawke’s Bay through to harvesting.ofFMNZ
Treecrop.
adopts It is intended that the Partnership, which
opportunities with a proven track record for best market practice, sources the best tree stocks as a Managed Investment Scheme for the
is registered
region.
managing qualityThe Manager
forests will
generating retain
strong a broad scope
returns. of property
and implements stringent quality and health & safety
locations typical of growing quality forestscontrols. and that suit the purposes of the FMCA, will be nominated as the purchaser
requirements
RDNZ has established andand objectives
manages in excessof
of the Partnership in line with under that agreement and will acquire the property for the
$850 million of New Zealand forestry assets on more
the SIPO. With global demand for food and timberpurchase price.
increasing, Huntingwood Forest Partnership Nominee
than 30,000 hectares for both New Zealand and particularly in developing economiesLimited
such as China,
or another custodian appointed in accordance with
international investors. India and Africa, combined with diminishing world
The two Treecrops will be managed throughsupply to theduecompletion the Governing
to the deforestation of tropical forests, the Documents and relevant law (the ‘Custodian’)
RDNZ isof the
the next harvest,
investment managerforecast toincommence in
specialising will strong.
2049.for forestry investment remains
outlook hold title of the property on trust for the Partnership.
sourcing, acquiring and managing the best forest and
2.1c How the Partnership propertyInvestors
carbon opportunities available including greenfield,
mid rotation and near to harvest forest assets. Invest-
will bearemanaged Theattributes
discovering the additional Manager
diversification that forestry assets can provide to the
andwill use the proceeds from the offer of 5,280
ments are tailored to best suit the investors criteria.
Units ($5,280,000)
modern portfolio supplementary to a sustainable and
to:
RDNZ isRoger Dickie
a licensed forest(N.Z.) Limited
investment manageris the licensedsocially
under Manager and investment. Consistent biomass
responsible
is responsible
the Financial Markets Conduct for and has the authority togrowth
Act 2013. manage • as
thea strong inflation hedge
provides reimburse
well as ro- the Manager for any principle and interest
Partnership’s assets as outlined in the Governing Documents. bust and uncorrelated measures of relating
risk/return to the property deposit, being $519,700,
relative
RDNZ, established more than 40 years ago, has a to traditional asset classes.
proven Fortrackfurther
record forinformation about the
sourcing and managing high Governing Documents • apply towards settling the property, being $3,677,300
quality refer
foreststo Sectionexceptional
generating 5 – Howreturns
the Huntingwood
to their Forest
Growth ratesLP being achieved for softwoods (ainbank
New loan facility of $1,000,000 will also be used),
investment
investors. Recently cutoverworks. and replanted first rotation Zealand are superior to others globally, thanks to the
forests established by RDNZ have achieved between all-encompassing climate (soil, rainfall• & sunshine
pay Manager and other party set up fees and expenses,
7.4% and 8.8% compound cash return, and even hours) and attention to tree genetics and beingtending $575,797,
For a copy of the Governing
greater when including the appreciated capital value
Documents you may visit the
regimes. Radiata pine is typically harvested 26 to 28
scheme
of replanted land. register at www.disclose-register.companiesoffice. • pay
years after planting and can yield between ongoing (present and future) investment fees and
750-850m3
govt.nz by searching for ‘Huntingwood Forest LP’ under
per hectare of logs in that time.
expenses, estimated as being $507,203.
RDNZ has “search
a wealthschemes”.
of expertise when analysing and
acquiring properties for forestry investment. As well, Investors are attracted to New Zealand because of our
The forecast purpose and timing for the use of investor
we engage independent expert consultants to produce stable government, our close proximity to the fast-
Key personnel of the Manager
feasibilities, cash flow studies, and valuations and have subscriptions
developing Asian markets and our established pro- may be subject to change dependent on
strong legal, accountancy and banking relationships to variations
fessional business practice, ranked amongst of revenues, fees, and expenses.
the best
Roger
facilitate onshore Dickie – Roger
investment is the managing director
requirements. of the
countries to do business. As well, the New Zealand
Manager. Roger is a member of the New Zealand government Institute Eachwith
is making measurable steps of regard
the above uses of proceeds from this offer are in line
RDNZ provides ongoing investment management, for- to environmental sustainability and carbon neutrality,
of Directors. Roger has established
est operations management and forest administration
and managed more than with the
making forestry a primary focus and allowing ease of
objectives of the Partnership, which is to invest in
services.90Ensuring
rural investment properties
that the investment with the majority
is transparent, access for of those
investors. real property and other assets in order to manage forests
investments
fully accountable in the form
and measurable of forest
by providing de- syndicates (partnerships). with the intention of earning a return on the investment. The
Roger’s bio
tailed operational and is on page
financial 44.
reporting. RDNZ enables the investor to directly useaccess the New
of proceeds from this offer will not change depending on
Zealand forestry market and benefit from the finan-
Forest Management New Zealand (FMNZ), our for-
the total amount
cial, environmental and socially responsible aspects of
raised.
William
est operations Dickiemanages
manager, – Will more
is the general
than 90 manager and a director
a sustainable real asset investment in land and trees.
forests of theNew
across Manager.
Zealand and Will manages
harvest in excessthe
of forest administration
Page 9You can also read
