New Forests, a Sydney-headquartered global investment manager focused on nature-based assets, has agreed for its Tropical Asia Forest Fund 2 ( TAFF2 ) to acquire a 75% stake in Kolombangara Forest Products Limited ( KFPL ), the Solomon Islands’ largest sustainable forestry business.

KFPL spans approximately 40,000 hectares, comprising around 14,000 hectares of fully developed hardwood plantation and 26,000 hectares of rainforest under conservation management.

New Forests’ TAFF2 will work with Kolombangara Island Investment Limited ( KIIL ) and Investment Corporation of Solomon Islands ( ICSI ) to deliver long-term economic, environmental, and social impacts to the Solomon Islands and the Kolombangara community.

Initiatives include modernizing forest operations, improving road and port facilities, strengthening community engagement, and implementing training programmes for workers.

Jeremiah Manele, Prime Minister of the Solomon Islands, says: “We welcome the progress of this partnership and recognize its potential to deliver meaningful benefits to local communities and the broader Solomon Islands economy.”

As part of the broader partnership, ICSI agreed to transfer a 20% stake in KFPL to KIIL. This fulfils the government’s commitment to the people of Kolombangara, which was 30 years in the making, giving them a direct stake in KFPL through KIIL’s 20% ownership.

This structure will allow landowners to be actively involved in shaping the company’s future and will strengthen community engagement.

“KFPL has a rich history of sustainable forestry, and we are excited to build on that legacy,” says Geoffrey Seeto, senior managing director and head of emerging markets at New Forests. “Together, we will look to enhance forest management, support local communities, and ensure that the natural capital of Kolombangara Island continues to thrive for generations to come.”  

The Restoration Seed Capital Facility provided support to TAFF2 for the due diligence of the project, helping to enhance environmental and social standards.