The vehicle had raised $120 million against a $300 million target prior to the commitments, according to Agri Investor‘s database.
“Through this investment in TAFF II, Mitsui will contribute to the realization of a decarbonized society by promoting investment in sustainable forest resources in Southeast Asia, where timber demand is expected to further increase,” Mitsui said.
New Forests’ TAFF II was also backed by Sumitomo Mitsui Trust Bank in March 2022, following the bank’s first foray into forestry in July 2021 through a commitment to Manulife Investment Management Timberland and Agriculture’s Hancock Timberland and Farmland Fund. The size of both commitments was undisclosed.
Separately, Sumitomo Mitsui Trust Bank was among 10 Japanese companies that seeded Eastwood Forests’ Eastwood Climate Smart Forestry Fund I with approximately ¥60 billion ($435 million; €388 million) of capital.
Eastwood Forests was established in November 2022 with the backing of Sumitomo Forestry, a Japanese-listed conglomerate with interests in forestry, distribution of timber and other building materials, housebuilding, real estate development and other businesses in 15 countries.