APG is investing in the acquisition of a large production forest in Chile on behalf of its pension fund client ABP. These forests have been awarded an FSC (Forest Stewardship Council) quality mark, which means that they contribute to the preservation of biodiversity and that their management takes the social and economic welfare of employees and local communities into consideration. Not only can APG be assured of a good return for ABP participants through this investment, but these forests will also contribute to ensure the liveability of our planet.
The acquisition is concluded by a consortium composed of three parties: the Timber Investment Group (TIG) of South American investment bank BTG Pactual, the Canadian British Columbia Investment Management Corporation (BCI), and APG, acting on behalf of its pension fund client ABP. The parties are establishing a new joint venture with an investment budget of 385.5 million US dollars.
This new consortium will become the owner of a Chilean production forest covering just over 80,000 hectares, which is almost fifteen times the size of the Hoge Veluwe National Park. The acquisition will make the new company the third-largest producer of timber in Chile.
“This transaction will not only help us to realize profitable and long-term returns for our pension fund client ABP and its participants; ’it also reflects our ambition to join forces with like-minded investors, who are interested in contributing to the sustainability of our planet,” says Vittor Cancian, Senior Portfolio Manager at APG. “These forests are certified by the Forest Stewardship Council (FSC), an international organization dedicated to the conservation of forests and responsible forest management worldwide. The FSC label enables companies and consumers to opt for wood, paper, and other forestry products made from materials sourced from well-managed forests.”
Gerrity Lansing, Head of TIG and partner at BTG Pactual: “The Timberland Investment Group has been looking for an opportunity to strengthen our presence in Chile for over a decade now. This transaction will provide us with the economies of scale we were looking for and meets our high requirements in terms of sustainability. We are delighted to be investing in this project together with BCI and APG, two of the world’s leading institutional investors.”
This investment will enable APG, on behalf of ABP, to contribute to the realization of the Sustainable Development Goals (SDGs) of the United Nations. These Sustainable Development Goals were established in 2015 with a view to creating a better and more sustainable world. APG is contributing to this by assessing, for each investment decision it makes, whether the return, risk, costs, and performance of these investments are proportionally correct in terms of sustainability.