Munich Re & Ergo’s Wealth Management Group is increasing its forest exposure and investing in the northeastern United States.
Meek has made another forest investment, buying more than 15,800 hectares of highland deciduous forest north of Pittsburgh in the US states of Pennsylvania and New York for as little as three million euros. This investment is part of a strategy aimed at increasing long-term exposure in the U.S. Forest Service. By focusing on professionally managed forests, Meek will be able to provide its customers with selective access to alternative investment opportunities with attractive returns, the company emphasizes in its broadcast.
The forest has a wide variety of deciduous trees: soft maple, red oak, black cherry, white oak and hard maple, and high harvest supply. Like all of Meekin’s forest investments, this forest needs to be managed consistently. Certification according to the PEFC (according to the Sustainable Forestry Initiative in the United States) is planned.
Currently available deciduous forests store about five million tons of CO2. Sustainable management ensures long-term CO2 sequestration in woods and durable wood products such as furniture and floors. Managed forests are an important natural-based solution to mitigate climate change because they can uniquely bind CO2 from the air as they grow and at the same time form wood fibers.
Forest investments have many benefits
Holger Nilsson, Managing Director, Global Chairman, Illiquid Assets: “Forestry is an integral part of Meek’s global investment strategy in the field of alternative investment. Well-selected forest investments help to further diversify investment portfolios and achieve attractive returns. Risk assessment and review of management strategy are part of the appropriate diligence process. Meek uses Munich Re’s expertise in assessing natural hazards and the potential consequences of climate change on these emerging investments. (a)
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