Property Brokers partners with Primary Partners to lead NZ in ETS-Registered Forest Sales

Property Brokers' national real estate reach across provincial New Zealand, combined with Primary Partners' specialist forestry expertise, optimises the value of forestry sales.

This collaboration represents a significant point of difference, providing "best fit" options for taking an existing forest to market and achieving the best possible value result.

Conrad Wilkshire, Property Brokers' General Manager of Rural, said, "We have successfully worked with Primary Partners in the past. However, selling forest estates at scale, registered under the ETS, is a significant growth opportunity for our primary sector. Importantly, the immediate focus is on established forests, where forest owners are looking to maximise their unique value story."

"Looking forward, we believe we can play an important role in supporting farmer landowners through this partnership, too. Despite significant financial incentives, our farming sector has historically stood back from forestry development, with the majority of the new investment coming from offshore."

Recent government policy announcements prior to Christmas are likely to further heavily incentivise existing farmer landowners to now consider their options, given they are unlikely to be competing with direct foreign investment in the future with respect to new planting at anything like the historic levels of the recent past.

"In our view, this leaves the door wide open for NZ farmers to maximise the value of their land assets through strategic planting, optimising the value of their core farming business and for specialist services such as ours, to provide valuable advice on how to market these properties in the future."

A unique aspect of diversified forestry investment is that carbon and cutting rights operate in markedly different markets from the underlying land. This allows an investor to sell forward one or both while retaining ownership of the land. Such a strategy can aid in farm succession, retire debt, or reduce risk if deemed appropriate by the investor.

Tom Duncan, Principal at Primary Partners, expressed his enthusiasm about the partnership: "We at Primary Partners are excited by this partnership and the opportunity it brings. Forestry has long been a staple diversification option for sheep and beef farmers in suitable areas of their farms."

"The ETS, while somewhat complicated and not without risk, has the benefit of bringing cash flows forward and contributing materially to farm profit.

Established forestry is in demand at present, so it can also provide a means for the release of capital to facilitate farm expansion, succession, and other investment opportunities."

Farmers often face limited options when seeking to step back from farming; times are changing, and this partnership is seen as providing the strategic input necessary to assist with the end game.

Property Brokers has benefited significantly from its collaboration with Primary Partners, recognising the value of specialist advice, their trusted position in the forestry industry, and their passion and experience within the primary sector.

Given the complexities of forestry, carbon markets, and their liabilities, and the pressing need to future-proof pastoral farming businesses, the partnership has been a strategic decision.

Property Brokers contributes specialist expertise in marketing and negotiating, bolstered by nearly 40 years of experience in buying and selling rural land, ensuring their roots are deeply embedded in provincial New Zealand.