Forestry

Global macroeconomic trends indicate both a steady increase in population and consumption in the medium to long term, and a growing preference for more sustainable building, packaging and construction materials. These megatrends support a sustainable increase in demand for timber and wood products. However, the global supply of timber is finite. The ability to upscale timber production is limited by the lack of available mature woodland, regulatory restrictions on levels of felling and the biological cycle of tree growth. This supply and demand dynamic makes forestry an increasingly attractive sector.

A core advantage of forestry harvesting is that there is no obligation to fell and sell timber if prices were to drop in a particular year. The timber can be left to continue to grow, awaiting a more attractive moment of sale. Revenue enhancements could also be achieved through land-use diversification (e.g. eco-tourism and potential carbon trading), offering increased and more stable revenues.

Averon Group has acquired a number of forestry holdings, including mature forestry and new afforestation projects. We also have a strong pipeline of future forestry asset opportunities, each in the region of c.100 hectares at a minimum.