Global forestry investment advisor announces sale of New Zealand forestry assets

  • Firm news

    15 April 2020

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One of the world’s largest providers of timberland investment services, Resource Management Service, LLC (RMS), has sold its Wellington based forestry business to CFPC (Singapore) Pte Limited, part of China Forestry Group Corporation.

Leading law firm MinterEllisonRuddWatts advised RMS on the sale, alongside Resolute Advisory, an independent M&A advisory firm headquartered in Melbourne. The MinterEllisonRuddWatts team was led by partner Mark Forman, from the firm’s market leading forestry transactions practice.

The transaction followed RMS’ sale of 36,500 hectares of freehold land in Tasmania at the end of 2019.

In 2015, RMS acquired long-term forestry rights over the 5,235 hectare forest located in Wellington from the Greater Wellington Regional Council. For the past five years, the company has focused on the generation of near-term cash yields and sustainable long-term value appreciation for its investors while managing the estate to allow continued public access.

Mark Forman said: “It was a pleasure working alongside the RMS and Resolute teams on this significant transaction for RMS – especially satisfying being able to complete the transaction in a particularly challenging economic environment. The forestry sector’s environmental benefits and economic contribution are essential to support the country’s economic recovery in the medium to long term.”

Managing Director of Resolute Advisory, Michail Lagogiannis added “We were very pleased to have worked with Mark and his first-class team from MinterEllisonRuddWatts. We combined well to manage an effective auction process and provide high quality advice in order to generate a successful outcome for RMS. The transaction highlighted continued interest in New Zealand forestry, which has developed into a highly sought-after asset class for many sophisticated investors.”

The MinterEllisonRuddWatts deal team included partners Mark Forman, Ross Pickmere, Bianca Tree and solicitor Brad Cope.

The transaction follows a successful 2019 for the M&A team at MinterEllisonRuddWatts. The team has been nominated as a finalist for NZ Deal Team of the Year at the upcoming Australasian Law Awards, and demonstrating the depth in the team, both Mark Forman and partner Silvana Schenone have been nominated as finalists in the NZ Deal Maker of the Year category.