Forestry Estate Acquisition

The Blade, Level 4, 12 St Marks Road, Remuera, Auckland, 1050, New Zealand | +64 9 379 6493
www.nzrlc.co.nz
21 October 2022
Forestry Estate Acquisition
New Zealand Rural Land Company (NZL.NZX) has today entered into an agreement to acquire up to 100% of
a forestry estate located the Manawatū-Whanganui region in the North Island. The estate is comprised of five
individual properties with a total area of approximately 2,400 hectares.
The settlement date for the acquisition is 15 April 2023 with the entire estate to be leased to New Zealand Forest
Leasing (NZFL) for a period of 20 years.
NZL’s cost to acquire 100% of the asset is approximately $63m (subject to final costs) with a first year payment of
$4.98m under the terms of the lease. The lease has annual CPI-linked rental adjustments.
The purchase will be funded using a combination of debt and equity - the equity component of which NZL may
fund using a variety of sources including reallocation of capital within the group and borrowing capacity. There is an
option for NZL’s tenant partner NZFL to purchase up to approximately 48% of the asset if required.
Chair of NZL, Rob Campbell said: “The acquisition represents a continuation of NZL’s strategy of broadening its
portfolio of high-quality rural land assets and tenants. On completion of the acquisition, NZL will have further
diversified its tenant base, entered the North Island and a new rural asset class in forestry land. NZL’s assets,
including this acquisition, are all underpinned by triple net leases with CPI-linked rental adjustments, ensuring the
Company remains well positioned in an inflationary environment.”
Further information on the acquisition will be provided closer to the time of settlement.
Investor Contacts:
Richard Milsom
Mobile: 021 274 2476
Email: richard@nzrlm.co.nz
or
Christopher Swasbrook
Mobile: 021 928 262
Email: chris@nzrlc.co.nz