Taaleri Forest provides a different model for forestry ownership: we look after all aspects of forestry investments on behalf of our customers and provide clients with the possibility of a steady and stable cash flow.
Taaleri Forest is a new way to own a piece of Finnish forest. Although there is no shortage of forests in Finland, investing in them is not that easy. It takes a lot of in-depth knowledge of the acquisition and management of forestry assets and of correctly timing the harvesting and sales processes, for example. Taaleri Forest looks after all these under the management of our forestry expert Jyrki Ketola. The model for maximising the return from forestry investments is another unique feature of the Taaleri model: we optimise the return of invested capital, not the return per hectare which is the conventional approach.
The investor making forestry investments can expect a steady and stable cash flow. Forestry is also an excellent element for diversifying the investment portfolio as the return from forestry investments are not correlated with shares or government bonds. Furthermore, forests have historically maintained their value and offered protection against inflation because the price of wood has followed the general inflation rate. Taaleri Forest represents an east-to-understand and historically stable investment in Finland’s natural environment.
Finland will not run out of forest. In fact, the volume of forests in Finland has kept increasing from the 1950s because harvesting and natural reduction together only account for approximately 70% of the annual total growth of wood stock. The demand outlook for Finnish wood is also positive. Timber exports to the Fare East are growing fast, as is the production of pulp in Finland. Wooden structures are increasingly popular in the construction business, and the consumption of high-quality cardboard is also on the rise. The returns from forest can be optimised by correctly timed harvesting and sales.
Taaleri's forest funds create a model for forestry ownership that enables our customers to own a piece of Finnish forest without forest management concerns. Funds invest their resources in Finnish forests.
Taaleri’s first forest fund was established about five years ago. The total area of the estates owned by the Forest Fund I is over 14,000 hectares of which the amount of forest land is about 12,500 hectares.
Taaleri Metsärahasto I Ky signed on 10th of October 2017 a binding agreement with Axa IM Real Assets to sell the Forest Fund I to AXA and the sale was finalized in November 2017. With this transaction the fund’s investors received a return clearly exceeding their expectations.
The total area of the estates managed by the Forest Fund III is approximately 8,000 hectares. The forest as an investment allows a steady cash flow to investors. The Fund has been closed and no longer accepts new investors.