For some, investing is all about maximizing returns. For others, it means just as much, to invest conscientiously, behave properly, think about future generations, take care of the environment and take social responsibility.
With an investment with a sustainable focus, you can so to say get the best from both sides. Sustainable focus and return are not mutually exclusive. On the contrary, sustainability is becoming an ever-increasing focus area.
Sustainable investments are more than wind turbines and solar cells. With an investment in forest, you can combine the investments and take advantage of similarities and differences.
In recent years, the Baltics have developed into an attractive market for forest investment as a green and sustainable alternative to the more traditional investments. The prospect of stable returns, low risk, positive liquidity, and not least a climate-friendly profile, make it an attractive investment object.
In the Baltics, one hectare of forest costs on average 7-10,000 EURO, while one hectare of similar forest costs 4-6 times more in Western Europe. So you get a lot of forest for the money in the Baltics.
Trees grow regardless of the business cycle. The trees have a natural, organic growth of approx. 3% per year and the unique thing about forestry is that you can postpone or advance your harvest depending on the current prices of timber. Are the prices e.g. low for a few years, then you can save the growth for years with better prices, and you have the opportunity to optimize returns and dividends from your wind turbine and solar cell investments.
In 2020, approx. 56% of Estonia's area and approx. 55% of Latvia's area covered by forest. Forestry is an important sector in the Baltic countries, they are skilled in forestry and the latest technology and methods are implemented. Drones are used e.g. for mapping, monitoring and planning the operation, modern and efficient machines perform a large part of the work and the timber is processed in efficient sawmills. The products are sold, among other things, to the furniture industry.
The forest areas are real estate and the operation provides a stable return with a relatively low risk. 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.
There is a well-functioning, open and lively real estate market, and the smaller properties are quickly marketable. It creates flexibility and liquidity in the investment when the portfolio needs to be adjusted.
The investment structure is simple and transparent. 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 or decrease your investments, depending on your needs and interests.
Forest investment in the Baltics can thus be a natural part of a sustainable portfolio and which is naturally linked to wind turbines and solar cell investments.
Jesper Kjær ApS is a independent developer and brokerage company. We deal with the brokerage of investment projects in Eastern Europe, including the brokerage of large farms, manors, estates, forest properties and hunting properties in Poland, Estonia, Latvia and Lithuania.
Our position is based on a deep insight into the local opportunities - and the ability to be at the forefront of tomorrow's currents. We have an in-depth knowledge of market conditions and opportunities.
We are thus the natural contact if you are looking for an independent advisor and intermediary within investment in Poland, Estonia, Latvia and Lithuania.
In our brokerage business, we work discreetly to create a connection between interested buyers and sellers. We have contact with expertise in all general and specific questions regarding real estate trading.
... ... but contact us if you have specific wishes.