April 9, 2024
(press release)
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MEAG on behalf of one of its clients has entered into an agreement to acquire about 33,000 hectares of sustainably managed forests in Finland for a low triple-digit million Euro amount in an off-market transaction. The properties encompass: The investment is part of MEAG’s investment strategy to develop well diversified forestry portfolios for its clients in most established forest markets. By focusing on professionally managed large-scale investments in selected regions like the North America, Oceania and the Baltic Sea Region, MEAG can offer its clients targeted access to opportunities with attractive risk-return prospects. The regional diversification is a key factor to mitigate potential risks like wood price volatility or potential climate change impacts. "The forestry asset class is an integral part of MEAG's alternative investment strategy to diversify individual client portfolios. These investments are ideal for long-term investors who are looking for inflation-protected returns, attractive cash flows and a low correlation with other asset classes. We are pleased that by investing in Finland, we are further enriching our diverse portfolio in one of the most developed forestry markets. Due to the great success of the forest investment program for Munich Re Group, MEAG has decided to offer its market access also to other institutional investors," says Wendelin von Gravenreuth, Head of Illiquid Assets Forestry. MEAG continues to increase its focus on alternative investments that offer attractive risk-adjusted returns over long periods of time. Alongside the asset classes of real estate, infrastructure, private equity and agriculture, forestry is an integral part of MEAG's global alternative investment strategy. MEAG has developed distinct expertise not only in forestry and related financial aspects, but increasingly also in sustainable forest management practices, leveraging Munich Re's special expertise in assessing natural risks and potential climate change impacts. At MEAG, all these aspects are an essential element of our due diligence process and ongoing management considerations. MEAG is the asset manager of Munich Re Group. With offices in Europe, Asia and North America, it also offers its extensive know-how to institutional investors and private clients from outside Munich Re Group. MEAG currently manages assets to the value of around € 340bn, € 60bn of which is for non-Group investors.
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