Mitsui & Co. and Nomura Holdings have agreed to acquire New Forests, a Sydney-headquartered real assets investment manager offering strategies in forestry, land management and conservation.

The deal will see Mitsui becoming a 49% shareholder of the Australian firm, Nomura taking a 41% interest, and the remaining 10% stake retained by New Forests staff. Mitsui has been a shareholder of New Forests since 2016 and will increase its shareholding from 23% currently. Financial terms of the deal were not disclosed.

Mitsui and Nomura will provide capital to support the firm’s strategic growth initiatives and the global expansion of its investment platform. New Forests will leverage Nomura’s global distribution network, particularly in Japan and more broadly across Asia.

Founded in 2005, New Forests currently has A$7.8 billion (US$5.8 billion) of assets under management across 1.1 million hectares (2.7 million acres) of forests, rural land, and conservation investments.

Commenting on the agreement, New Forests chief executive officer David Brand says: “New Forests has achieved a great deal over the past 17 years, growing institutional investment in the forestry asset class and re-imagining the investment opportunities in rural landscapes. I am delighted to have found two partners in Mitsui and Nomura who share in our vision and will provide us the support to further scale our business and provide new opportunities for our clients, stakeholders and our 100 staff.”

Yoshihiro Namura, senior managing director, head of the investment management division, at Nomura, adds: “We have been impressed with New Forests’ leadership and track record in sustainable forestry and land use, and see New Forests’ approach to climate change being complementary to Nomura’s business. As a large global financial services group, we play a significant role in helping to solve environmental challenges, and we see investment in sustainable land use and forestry as a key part of the solution.”

As part of the agreement, Brand will continue with New Forests until June 30 2025 and focus on strategic initiatives and growth opportunities.

Two representatives from Mitsui and two from Nomura will join the New Forests board of directors, along with two independent directors and an employee nominee director.

The agreement is subject to regulatory approval and expected to be completed by December 2022.