(May 3, 2012) — New Zealand’s state pension fund, which was formed to pre-fund the pension liabilities of the baby boomer generation, is looking to buy total control of the country’s biggest commercial forest estate from Harvard University’s investment arm.
The New Zealand Superannuation Fund said that it, along with global investment company GMO Renewable Resources, is seeking to buy a 60% stake in Harvard Management Company’s commercial forest estate, Reuters initially reported.
Harvard Management purchased the forest in December 2003 for about $650 million.
According to the New Zealand scheme, Harvard holds a 60% stake in Kaingaroa, an estate of approximately 170,000 hectares of harvesting rights to plantation forest located in New Zealand’s Central North Island.
Meanwhile, the New Zealand Superannuation Fund bought a 40% stake in 2006 for around NZ$300 million. Kaingaroa is the New Zealand fund’s largest single investment, and part of its $1.26 billion in total timber investments.
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