The INVL Sustainable Timberland and Farmland Fund II, a fund that invests in forest and land and whose investment portfolio is managed by INVL Asset Management, the leading Baltic alternative asset manager, completed a transaction to acquire nearly 1,400 hectares (ha) of forest in Romania.
“We’re constantly on the lookout for new acquisitions in countries with a stable regulatory environment and an attractive investment return. This deal on the Romanian market expands the geography of the fund, which until now has invested in land and forests in Lithuania and Latvia,” says Martynas Samulionis, INVL Sustainable Timberland and Farmland Fund II’s managing partner.
He says the Romanian market is one of the fastest growing in the European Union (EU), the country has a developed timber industry, and a lot is being invested in infrastructure there. Further evidence of Romania’s progress is the fact that in March 2024 the country will partially join the Schengen Area.
Romania’s forests show high levels of maturity, with average volume of about 340 cubic metres of wood per hectare. The country’s forests are dominated by valuable tree species such as beech, spruce, fir, and oak.
“We’ll manage the forests in Romania, as we do in other countries, in accordance with the local laws, best practices and high standards of sustainability,” INVL Sustainable Timberland and Farmland Fund II’s managing partner notes.
Currently the forest area that the fund manages in Romania totals just over 1440 ha.
Under its strategy, INVL Sustainable Timberland and Farmland Fund II invests in sustainably developed forest and farmland in Central and Eastern European countries that offer attractive investment returns and a stable regulatory environment. It heavily stresses the sustainable management of forest and farmland, focusing on not just nature preservation but also social responsibility. In its activities, the fund adheres to sustainable forestry standards and seeks to implement the principles of sustainable farming on agriculture land.
INVL Sustainable Timberland and Farmland Fund II, launched in 2020, is administered by the Apex Group, one of Europe’s largest providers of fund service. The fund was established and operates under the laws of the Grand Duchy of Luxembourg and invests in individual countries in keeping with the regulatory restrictions set by those countries. To date INVL Sustainable Timberland and Farmland Fund II has raised EUR 94 million from investors and manages more than 20,800 ha of forest and land. The fund has a hard cap of EUR 200 million.
About INVL Asset Management
INVL Asset Management is the leading Baltic alternative asset manager. We strive to deliver superior risk-adjusted returns to our investors while positively impacting our region’s economic development.
We are part of the Invalda INVL group with a track record spanning over 30 years. Our group manages more than EUR 1 billion of assets across multiple asset classes including private equity, forests and agricultural land, renewable energy, real estate as well as private debt. Our scope of activities also includes family office services in Lithuania, management of pension funds in Latvia, and investments in global third-party funds. Further information www.invl.com/en/.
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