In the opinion of many, new ingredients are needed in the concocted dish of traditional types of investment.
There are many different types of investment to choose from, but with a rapidly changing world and a turbulent security landscape, it makes good sense to invest your capital at low risk.
Forest is part of the so-called alternative types of investment, and putting money in trees differs from more traditional investments such as stocks and bonds by not being so sensitive to the economic development of society. Forest is a relatively safe investment and with good opportunities for a future economic gain.
Investing in forests provides a stable return with a relatively low risk. Moreover, this type of investment spreads the risk in a good way because it is flexible and is not affected by the same factors as other more traditional investments. For example, if the price of wood is one year low, you can fell less and leave the trees until the price is higher. The trees increase in value with age because larger trees can be used in the processing industry for e.g. furniture, floorboards and pulp. The remaining wood, which is not suitable for use in the wood processing industry, is typically chopped into chips and sold to combined heat and power plants, etc.
In addition to a stable operating profit, one can, over a number of years, expect a significant economic gain on a forest property. Over the past many years, forest prices have been rising because the industry is demanding more and more wood for its products. In practice, the trade price of the forest is determined by supply / demand in the local area where the properties are located, the quality of the wood and by how much has been harvested.
The investment structure is simple and transparent, where the investor typically owns his own forests via a local, forest-owning company (equivalent to an Ltd). This ensures that you as an investor can decide to increase your investment or make a full or partial exit at any time. This structure also provides good opportunities for optimization in relation to tax.
There are many forest service providers in the Baltic countries that offer efficient management of the forests. They generally have a high technological level ranging from computer-based forest management, GIS application and aerial photo analysis and modern hydraulic forestry machines and efficient handling. It is therefore quite uncomplicated to find a good local forest manager.
The whole world is currently focusing on the climate, so forest investments are facing a bright future, just like e.g. wind turbines and photovoltaic systems, etc. which lie naturally together in a sustainable portfolio.
We place great emphasis on personal, individual service and advice. It creates security and trust in the collaboration, but is also an essential source for the successful result.
Jesper Kjær ApS has brokered agriculture in Poland and the three Baltic countries since 2003 and has over the years developed a large and efficient network. We have direct contact with many forest owners who want, or are considering, selling forest plots. We offer our knowledge, experience and network for the mediation of forests in the Baltics, directly from owner to investor. We can always offer to mediate both smaller plots or a large number of hectares of forest in the Baltics.