Terra Verde Investments Limited Partnership
An investment in actively managed regenerative forestry, forecast to deliver inflation-protected returns starting at 8.5% p.a.
Regular CPI-adjusted income delivering unique environmental and social benefits.
Terra Verde Investments LP is an investment in Regenerative Carbon Forestry.
In October 2023, the Partnership was established with the purchase of Puketai South, a 565-hectare property in the Lower North Island of New Zealand.
The Partnership is a lease-based investment opportunity, delivering strong monthly distributions beginning at 8.5% p.a., while also making a positive difference to New Zealand’s environment and climate change mitigation targets.
Terra Verde investors will own the land and the newly planted forest, which will then be leased to New Zealand Carbon Farming (NZCF).
Under the lease, NZCF will have the rights to the Carbon Credits generated by the forest, and therefore take on the potential ups and downs of the NZU market. In return, Terra Verde will receive rental payments forecast to generate steady monthly returns starting at 8.5% p.a.
The lease terms are very favourable: with uncapped annual CPI adjustments, “triple net” terms and a long initial lease term (~16 years, with options to extend up to 30 years).
The right tree in the right place.
NZCF are one of New Zealand’s leading experts in managing permanent forests for carbon sequestration and native regeneration using Pinus Radiata, and already manage over 70,000 hectares of their own land in this way. Pine Forests are the most cost-effective way to sequester carbon and are vital to reaching New Zealand’s climate change goals. [i]
Pinus Radiata is also a perfect nurse crop for regenerating native forests. Over time, Terra Verde’s ambition is for what started out as an exotic pine forest will be actively managed to revert back to native species, and one day be home to Kauri, Rimu or Totora.
The Partnership is an excellent example of exploring new ways to add value to marginal New Zealand farmland, both from an economic and environmental perspective. Using only Grade 6 properties and above, Terra Verde hopes to increase this marginal land's per-hectare value and profitability while creating new jobs for local communities.
Investment Highlights
- Initial forecast 8.5% p.a. return*, with distributions paid monthly.
- Inflation protected - uncapped annual rental growth based on CPI.
- A long-term, 16-year, triple-net lease means all costs associated with the properties, including maintenance, insurance, and rates, are paid for by NZCF.
- The Puketai South property is being developed at NZCF’s cost, meaning there is the potential for capital gain as the forest matures.
- As a group, NZCF is one of New Zealand’s largest private landholders, with 70,000+ hectares under ownership.
- Minimum investment: $50,000.
- Available to wholesale investors only.
Become part of the solution.
Few opportunities simultaneously address investors' financial, ethical and environmental concerns. Terra Verde Investments LP can provide substantial forecast distributions, robust lease terms, a significant lessee, and a dedication to effecting positive environmental and social change.
*For Year 1 and 2, rental will be the higher of either rental income that generates a 8.5% p.a. distribution or a CPI-adjusted lease.
This offer is open to persons who fall within the exclusions applicable to offers made to "wholesale investors" as set out in Schedule 1, clauses 3(2)(a)-(c) and 3(3)(a)-(b)(ii) inclusive of the Financial Markets Conduct Act 2013 (FMCA). You can obtain further information on FMCA requirements, and whether you come within the exclusions and their requirements at www.myfarm.co.nz/can-i-invest
How to apply?
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