Timberland investments
In forest investments, the capital is tied to biological assets whose value increases mainly due to the biological growth of trees. Despite of wood price fluctuations, the biological growth process transfers solar energy and soil nutrients steadily into new growing stock. The asset value growth depends also on timber price and land value.
Because biological growth is independent from economic cycles, the value development does not correlate with the stock market development. With these characteristics, forests are attractive investments options for institutional investors that consider long-term portfolio returns. The forest industries’ motive to invest in plantations is to ensure the long-term wood supply at a competitive cost, especially in emerging market economies.
So far, most of the timberland investments have concentrated in the US and to some extent in Europe, Oceania and few South American countries such as Brazil and Uruguay. Emerging markets in general offer new challenging opportunities for timberland investments especially in Latin America and in South East Asia. In addition, several African countries have become attractive tree growing targets.
In-depth knowledge of investor needs and targets
Indufor has significant knowledge of potential timberland investment targets worldwide, as well as relations with various timberland investors. We constantly update our plantation database covering all the important forest regions, and maintain a multidisciplinary and multicultural expert team that understands the complex issues related to timberland investments.
Indufor plantation databank coverage
| Contacts: | Petri Lehtonen Marjo Maidell |
Our services:
- Investor search
- Screening and assessment of potential investment targets including new plantation sites (green-field) and existing assets
- Pre-feasibility/feasibility studies for plantations, including financial analysis and wood cost calculations
- Valuation of forest assets and due diligence