# CQuest Forestry Fund **Provider:** MyFarm Investments (https://www.myfarm.co.nz) **Source:** https://wholesaleinvestor.co.nz/funds/cquest-forestry-fund **Facts JSON:** https://wholesaleinvestor.co.nz/api/im/cquest-forestry-fund/facts.json > This document is a machine-readable concatenation of 1 extracted document(s) for AI/LLM grounding. The original PDFs are linked in each section. > Wholesale-only — for eligible investors per FMCA Schedule 1. WI does not republish manager performance numbers; verify with the manager. --- ## IM **Source PDF:** https://www.myfarm.co.nz/images/assets/2389/1/cquest%20forestry%20fund%20lp%20information%20brief%2019-3-2025%20-%20final.pdf **Published:** 2025-03-19 **Pages:** 2 **Extracted via:** pdftotext on 2026-05-20 CQuest Forestry Fund Limited Partnership 9-12% p.a.* Investment Brief: Wednesday 19th March, 2025 * Target- internal rate of return (IRR) This is an opportunity for wholesale investors to access a portfolio of forestry assets that aims to provide attractive long term returns from carbon and production forestry. The target internal rate of return (IRR) is 9-12% per annum over the investment’s lifetime. The objective of the CQuest Forestry Fund Limited Partnership (‘CQuest Forestry Fund’ or ‘the Fund’) is Investment Highlights to invest in a portfolio of high-quality forestry assets, planted and registered in the NZ Emission Trading An opportunity to access target returns of Scheme (ETS), to earn carbon credits and produce 9-12% p.a. IRR from a high-quality portfolio of timber. The Fund’s focus is to convert suitable bare carbon/production forests. land into production forestry. Afforested land may • Dual income streams: from both carbon also be considered if it meets the Fund’s investment and timber production. criteria. The goal is to purchase up to 1,000 hectares in 2025 and expand to over 2,000 hectares over the next • Potential for capital growth: as the forests three years, as opportunities arise. mature. The offer for Units in the CQuest Forestry Fund is • Potential for upside: every $10 change in made following the success of the original CQuest the price of carbon credits could lead to a partnership. While it was not our original intent, 3.0% - 3.7% p.a. change in returns in years a successful sale of the original portfolio has 5-17. been executed with an instituational buyer as the purchaser. This transaction delivered a $1.50* return • Targeting high-quality asset portfolio: to investors for each dollar invested, within four years aiming to acquire a portfolio of institutional- of the original investment date. This experience has grade forests. proved that our team can effectively select properties • Proven track record: MyFarm’s first forestry for afforestation, undertake the needed property syndicate is projected to return $1.50* per development and forest establishment, successfully $1 invested within four years; experienced manage ETS registrations and ultimately create a forestry management partner. quality portfolio of forests. Introducing CQuest Forestry Fund has stabilised1. The upper end of the Fund’s target The Fund has three key assets allowing flexibility to returns are based on the NZ Government’s ETS maximise investor returns – carbon credits, trees, and auction floor prices, starting at $682 per NZU in 2025 land. and increasing to $82 per NZU in 2029. The Fund’s forests will sequester carbon, providing There is potential upside to this floor price. The meaningful income from year 4 to 16 under the government has limited NZU supply in 2025 to 6 “averaging” approach within the ETS. The sale of NZUs million NZUs through its four ETS auctions, which is is expected to provide cashflow from year 5 to 17. only expected to meet 30% of the estimated demand The Fund then expects to achieve a significant capital from emitters. This means the remaining demand for inflow when the trees are harvested at tree age of 25 NZUs will have to come from forest owners or existing to 35 years. reserves. Future auction volumes are set to decline further which should also bolster the market. For the Why Carbon Fund, a $10 change in NZU prices is forecast to result in a 3.0% - 3.7% change in annual returns during years After a period of instability in 2023, the carbon market 5-17. * For first round investors dependent on final settlement contingencies. Over the longer-term, deadlines for New Zealand’s Consequently, there are fewer competitors for Paris accord emissions reduction targets are looming, sub 1,000 hectare land that is either suitable for with 2030 and 2035 commitment periods now coming afforestation or recently planted. This situation into focus. It appears New Zealand will fall well short presents a potential economic opportunity for the of these targets, potentially requiring the purchase of Fund as it aims to develop a portfolio of high-quality offshore NZUs to offset our poor rate of progress in and productive forests. reducing emissions. Onshore initiatives to cut or off-set emissions are likely to become increasingly important, potentially further increasing demand for NZUs. Why Forestry Timelines Forestry is a long-term investment, and is poised to The Fund aims to raise $7.0-13.6m of benefit from a global transition towards a zero carbon capital by the end of April 2025 to allow for economy. The use of wood and its by-products is the purchase and planting of up to 1,000 anticipated to expand in various sectors, including hectares of forest by the end of 2025. The construction, energy supply (biofuels), packaging, roading Fund then intends to reopen for additional (as a bitumen substitute) and plastic alternatives. This capital to continue to grow the portfolio as increasing demand is expected to enhance the Fund’s market conditions allow. returns when the trees are harvested, or if we execute a • Offer Close: 30th April 2025 sale of forestry cutting rights. While log prices have been suppressed since 2020, MPI’s market outlook is looking • Funds Due: 20% of funds due on 30th more positive. Stimulus packages and regulatory changes April 2025; 80% of funds due with 20 days in key markets are expected to improve demand and notice. market access3. • Minimum Investment: $50,000 Why Now Regulatory settings and market dynamics have created an opportunity for the CQuest Forestry Fund to purchase suitable land at an attractive price. How to Find Out More Firstly, new regulations4 proposed to come into To find out more or to request the full Information force in 2025 have created uncertainty and reduced Memorandum, please contact one of the MyFarm demand for some Class VI properties. The proposed Client Relations Team. new rules will limit the amount of Class VI land that can be registered in the ETS to 15,000 hectares per year, with certain exceptions. Whilst announcing these MyFarm Client Relations Team: regulations, the government indicated transitional measures for landowners who can demonstrate an Gordon Love Louise Bignall intent to afforest prior to 4th December 2024. Through Client Relations Manager Head of Client Relations our partners, we have secured sufficient seedlings to afforest between 500 and 700 hectares of land. +64 27 488 8238 +64 21 172 0662 The Fund is also actively seeking properties with an gordonl@myfarm.co.nz louiseb@myfarm.co.nz intention to plant this winter. Scott Levings Secondly, tighter overseas investment regulations Client Relations Manager and limitations around ETS forestry registrations +64 27 342 8342 are leading to reduced competition for bare land from overseas buyers. We believe this provides an scott@myfarm.co.nz opportunity for a more agile New Zealand owned structure, such as the CQuest Forestry Fund, to operate successfully in the marketplace. Note: This Investment Brief is directed to persons who fall within the exclusions applicable to offers made to “wholesale investors” as set out in Schedule 1, clause 3 of the Financial Markets Conduct Act 2013 (FMCA). Finally, pastoral farming which is the main alternative You can obtain further information on FMCA requirements, and whether use for the Fund’s targeted land, has weathered a you come within the exclusions and their requirements on our website: sustained period of poor returns which has also www.myfarm.co.nz/can-i-invest depressed land prices and demand. This offer described in this Information Brief is not suitable for retail investors. 1 Carbon price | interest.co.nz 3 Situation and Outlook for Primary Industries | NZ Government 2 Annual updates to emission unit limits and price control settings Ministry for the Environment 4 Farm to forestry rule changes for ETS - Inside Government NZ