Terms and queries about investing in forestry
New Issue
A new forest investment offered for direct investment under a Product Disclosure Statement. See Product Disclosure Statement.
Open Tender
The process to invest in an established Forest Enterprises forest investment is to purchase shares via open tender, a process that Forest Enterprises facilitates on behalf of our existing clients. Potential buyers submit an offer to buy shares, which is either accepted by the seller or an agreeable offer is negotiated.
Ordinary Partnership
This is an investment structure used by some of Forest Enterprises’ historic forest investments. An ordinary partnership is the relationship between persons carrying on a business in common with a view to profit. Unlike a company, an ordinary partnership is not a separate legal entity. Partners in an ordinary partnership therefore have unlimited personal liability [...]
Partnership Agreement
See Deed of Partnership.
Partnership Shares
The name of the unit of investment in a partnership.
Pre-Emptive Rights
A feature of an ordinary partnership investment, one of our historic investment structures. Under pre-emptive rights provisions (set out in the Deed of Partnership), should one member wish to sell their ordinary partnership share(s), they must first be offered to the other partners and only when these partners have declined to purchase at the seller's [...]
Product Disclosure Statement (PDS)
The name of the registered disclosure document produced by Forest Enterprises for prospective investors as required under New Zealand’s Financial Markets Conduct Act 2013 for new issue investments. The Product Disclosure Statement replaces the Prospectus and the Investment Statement that were previously required under the Securities Act 1978. Visit the FMA website here for a helpful [...]
Projected Return
This is a calculation of the harvest returns using the current average log prices over the last 12 quarters (3 years) used by Forest Enterprises. The projected return is indicative only and can vary up or down, depending on actual rates of tree growth and associated timings of pruning and thinning, changes in stocked area, [...]
Prospectus
See Product Disclosure Statement.
Rotation
The period of time from when a forest is planted to when it is harvested. The first rotation refers to the first period that a treecrop has been grown on a particular area of land. The second rotation refers to the second period that a treecrop has been grown on a particular area of land. Second [...]