Canadians buy 30 per cent Kaingaroa forest from Harvard Funds

The Public Sector Pension Investment Board –  one of Canada’s largest pension investment managers – has agreed to buy 30 per cent of  Kaingaroa Forest from Harvard University’s endowment fund. Harvard will retain a 28.75% stake in Kaingaroa Forest after completion of the transaction, which remains subject to regulatory approval and other customary closing conditions.

As part of the transaction, the New Zealand Superannuation Fund has also agreed to purchase an additional 1.25% stake, taking its total shareholding to 41.25%.

The 178,000 hectare forest estate, located in the central North Island of New Zealand, is widely recognised as one of the world’s premier softwood plantations. Operational forest management will continue to be provided by Rotorua-based Timberlands Limited. The partners in Kaingaroa own the harvesting rights to the plantation with most of the underlying land owned by local Iwi.