Definition of terms and acronyms
A price range (e.g. $16,500 to $18,000), which is provided as an indication of the 'current value' of a Forest Enterprises established forest investment shares for sale by open tender. The actual initial cost will be the agreed purchase price.
A metric used in capital budgeting to estimate the profitability of potential investments. IRR on a forest investment is the rate of return that makes the net present value of all cashflows (both positive and negative) from a particular investment equal to zero. It can also be defined as the discount rate at which the [...]
The name of the document produced by Forest Enterprises containing comprehensive information on previously issued established forest investments currently for sale by open tender.
See Product Disclosure Statement.
The name given to an investment parcel in a Forest Enterprises’ forestry investment. Typically each investment unit comprises 200 shares in a Limited Partnership. Investors can purchase more or less shares in the same or different forests.
The Japanese Agricultural Standard (JAS) cubic metre is a global industry standard measurement of log volume. JAS is a measure of useable log volume rather than weight. It is an attempt to measure the volume of the log available to the saw miller, involving special methodologies of assessing log diameter and length. Export log grades [...]
Areas within a forest where harvested logs are processed and loaded onto trucks for transport to a port or mill.
LiDAR, or light detection and ranging, is a relatively new remote sensing survey method, using a pulsed laser to calculate an object’s variable distances from the earth surface. LiDAR can be used to complement ground-based tree crop inventory and reduce the overall cost of obtaining area and crop condition data and information.
The investment structure for most Forest Enterprises’ investments is a Limited Partnership (LP), comprising multiple Limited Partners who are the investors, along with one General Partner (GP). Read this helpful guide on Limited Partnerships from law firm DLA Piper New Zealand.
A Limited Partnership must have a written partnership agreement which sets out the matters agreed between the parties in respect of the operation of the Limited Partnership and the conduct of its business.