May 12, 2022
(press release)
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MEAG, on behalf of one client, has signed an agreement to acquire a large-scale forestry asset in Australia. The contract was signed with Midway Limited (ASX: MWY), one of Australia’s leading forestry managers and woodfibre exporters. MEAG will acquire an existing plantation estate for a three-digit million Euro amount and has also committed to invest another three-digit million Euro amount to develop new hardwood plantations in the same region of southwest Victoria, Australia over the next five years. The acquisition of existing plantations and MEAG's commitment to the development of additional plantations provide long-term job opportunities for local plantation workers and create income streams for local communities. In addition, a significant amount of CO2 will be captured through the sustainable management of the existing plantations as well as the planned afforestations. The acquired asset, as all MEAG forestry investments, will be certified by independent, internationally recognized schemes. This strategy underlines the sustainability ambitions of Munich Re and MEAG and aligns also with the Australian government's climate and ESG ambitions. Holger Kerzel, Member of MEAG’s Management Board and Global Head of Illiquid Assets comments: “This investment gives MEAG excellent access to the Australian hardwood sector. MEAG identified this sector as a key growth opportunity in global forestry and our partner Midway is one of a few companies that could create a platform for significant new commercial hardwood forestry investment that meets our criteria especially for sustainable investments.” MEAG is the asset manager of Munich Re and ERGO. With offices in Europe, Asia and North America MEAG offers its extensive know-how to institutional investors and private clients. MEAG currently manages assets of a value of around €330bn, €60bn of which for institutional investors and private clients.
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