Investing in forest land.
Baltic forest land.
An investment opportunity that is ready for growth.
Global development will in future focus more and more on climate challenges and opportunities. It will look at limited natural resources and people's access to them.
Baltic forest land is an investment opportunity with growth potential, that has quietly developed since the peaceful revolution in Eastern Europe in 1989.
Jesper Kjær ApS has developed and brokered investment projects in Poland, Lithuania, Latvia and Estonia since 2001 and agricultural land since 2003. Over the years, we have developed a large and efficient network with whom we intensively collaborate to provide the best bargains to our investors.
We offer our knowledge, experience and network for the brokerage of forests in the Baltics, directly from owner to investor.
While investing in forest land has been a popular trend in many European countries for decades, it is a relatively new strategy and development in the Baltic States. The Baltics are covered in dense, high-quality timber, a valuable resource for the region’s robust forest product industry.
As a growing, favorable market the Baltics represents a real opportunity for those looking to invest in forest land.
Baltic forests have a high productivity rate. Due to the environment and landscape, which is ideal for growing forests, trees can potentially grow more than 30 meters in height. These forests can produce an incredibly large amount of timber, averaging 180-240 cubic meters per hectare per year. For reference, Scandinavian countries average only approximately 120 cubic meters per hectare per year.
In recent years, the Baltics have developed into an attractive market for forest investment as a green and sustainable alternative to the more traditional investment types. 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, one gets a lot of forest for the money in the Baltics.
In addition to the affordability and high productivity rates of Baltic forests, we can provide the prospective investors with cleared, early-growth, middle-aged or mixed forest land.
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 one can postpone or advance one’s harvest depending on the current prices of timber. Are the prices e.g., low for a few years, then one can save the growth for years with better prices.
The return of property to the original owners, after the restoration of the three Baltic nations in the 90s, has resulted in the average property size being small. It is considered by some investors as a disadvantage, while others see it as an advantage because its negotiability is better. The number of potential buyers is greater because the buyer's capital does not have to be so large for each transaction.
There is a well-functioning, open and lively real estate market, and the smaller properties are quickly tradable. It creates flexibility and liquidity in the investment.
The investment structure is simple and transparent, where the investor typically owns his own forests via a local, forest-owning company (equivalent to a 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.
We help private investors and investment funds with finding and acquiring the forest land and agricultural land plots or a set of land plots that suit their portfolio. We have direct contact to the property owners and have constantly a wide range of forest investments to propose.
Contact us if you are considering a forest investment.