New Zealand forestry contributes circa $6.8 billion of annual export revenue, 1.6% of New Zealand’s GDP, and employs circa 35,000 people in wood production, processing and the commercial sector.
Kelt Capital strategically entered the forestry market in 1990 by acquiring steep, unproductive farm land for the purpose of planting Pinus radiata planation forests.
Traditionally these forests would be syndicated to provide their client base with sound investment opportunities in a growing industry.
The New Zealand forestry industry dates back to 1930 when vast areas of land was planted in Radiata pine (Pinus radiata) to address growing timber shortages.
Today there are 1.69 million hectares of sustainably managed exotic plantation forests in New Zealand, 7% of the total land area. Pinus radiata makes up 90% of the exotic plantation area, with Douglas-fir accounting for 6%, the balance made up of eucalypts and other species.
2008 changed the shape of the industry with the introduction of the ETS, a scheme resulting in Crown-issued Carbon credits (NZU’s) for forests planted after 1989. This introduction meant that a Pinus radiata forest now had two forms of income (timber revenue post harvest and the sale of NZU’s as sequestered).
Following the introduction of the ETS, Kelt Capital continued to acquire and syndicate unproductive farmland for the purpose of planting Pinus radiata plantation forests. They’ve strategically placed their business in this leading industry for almost 30 years.
Kelt Capital owns circa 2,000 hectares of forestry with a further circa 1,000 hectares under contract. They have their finger on the pulse and know where the industry is headed.
Kelt Capital owns five forestry properties spread across the North Island of New Zealand. The Kelt Capital forestry portfolio continues to expand as new properties are added as part of their continual acquisition strategy.