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Mitsui to Become Shareholder in Forestry Investment Manager New Forests

Feb. 29, 2016


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) announced today that it has entered into an agreement to acquire a 22.5% shareholding in New Forests Pty Limited ("New Forests", Head Office: Sydney, Australia).

New Forests is an investment manager specializing in sustainable forestry and land management in Australia, New Zealand, Asia, and the United States. Founded in 2005, New Forests has assets under management of AUD 2.8 billion (approximately ¥240 billion) including more than 600,000 hectares of timber plantations, rural land, and conservation investments globally. New Forests is one of the ten largest forestry investment managers in the world and the largest focused on the growing timber markets and plantation sectors of the Asia-Pacific region. New Forests is also distinguished by its commitment to high levels of environmental performance and positive social and community outcomes in its investment and forestry asset management policies. The company is a signatory to the United Nations-supported Principles for Responsible Investment as well as other industry and membership groups supporting best practices in forestry, responsible investment, and sustainability. New Forests also has a commitment to third-party certification of the sustainability of all its investments and operations.

Over the past 30 years, institutional forestry investment, including funds, direct investments, and timber REITs, has grown to more than USD 100 billion (approximately ¥12 trillion). The sector is positioned for further growth in the coming years as institutional investors seek to increase investment in real assets like timber, agriculture, real estate, and infrastructure. In addition, global timber demand is expected to grow at 1.5-2% per annum, and incremental growth in supply will need to come from sustainably managed plantations. Mitsui's investment in New Forests is part of its strategy to increase and diversify its investment in forestry to meet the world's growing demand for sustainably produced timber from well managed forest resources.

Mitsui looks forward to supporting the growth of New Forests and the sustainable forestry investment model, positioning this investment at the centre of its business portfolio. Through this investment Mitsui will contribute to sustainable development while providing a stable supply of wood resources through New Forests' business. Mitsui will support the growth of New Forests using its extensive business network and knowledge accumulated through its long-term engagement in the forest sector. Mitsui also has expertise in asset management and financing and the capacity to support New Forests in entering the Japanese institutional investment market. Working together, Mitsui and New Forests hope to expand Japanese institutional investment in the forestry sector.

Profile of New Forests Pty Limited

Company name New Forests Pty Limited
Head Office Sydney, Australia
Established May 2005
Representative David Brand (Founder, CEO, and largest shareholder)
Activities Forestry Investment Funds, Environmental Investment Funds

New Forests manages a diverse set of forestry investments in the following regions

Australia and
New Zealand
New Forests manages extensive pine and eucalyptus plantations across Australia and New Zealand for both domestic timber demand as well as export to Asian markets. New Forests' investments also include wood products business Timberlink Australia, with sawmills in Australia and New Zealand, and forestry management business Forico, which operates timber plantations, woodchip mills, and seedling nursery facilities.
Southeast Asia New Forests manages the first dedicated investment fund focusing on certified plantation forestry in Asia. The fund invests in tropical timber plantations, including rubber, acacia, and eucalyptus. The investment strategy supports the shift in Asian forestry from natural forest logging to sustainable plantation management. Demand for timber, wood fibre, and natural rubber is expanding in step with rising living standards throughout the region, and these timber plantation assets will help to ensure a reliable, renewable supply of natural commodities for the growing economies of Asia.
United States New Forests is one of the largest providers of forest carbon offsets to the California carbon market. New Forests has the capacity to manage forestry assets for both timber and carbon, with carbon offsets being sold to energy companies required to reduce their greenhouse gas emissions.

New Forests' plantation in Australia

New Forests' plantation in Australia

New Forests' plantation in Australia

Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Akihiro Tamo
Telephone: +81-3-3285-6645
Facsimile: +81-3-3285-9819