Matariki Forests' new shareholder Phaunos Timber Fund sees New Zealand as a stable and receptive economy to invest in with exposure to some of the fastest growing countries in the world.

Phaunos, an investment vehicle based in Guernsey in the Channel Islands, announced on Christmas Eve plans to invest $167 million in shares and loans to Matariki Forests, which owns six New Zealand forest estates.

The investment in New Zealand is the first by Phaunos and among the biggest it has made so far, according to its accounts and investment statements.

Matariki Forests has signed an agreement with Phaunos Timber Fund for a $167 million investment in the Matariki Forestry Group, subject to Overseas Investment Office approval.

Matariki Forests owns the third largest forest estate in New Zealand, comprising 140,000ha.

It is owned by a consortium and is managed by Rayonier New Zealand. The business was withdrawn from sale earlier this year, apparently because buyers had difficulty with funding. The forests are spread around the country.