AXA IM Alts has invested an undisclosed sum to buy a 537-hectare forest in France on behalf of clients.
AXA IM Alts said the acquisition of Forêt de la Reine lifts its total forestry assets under management to 84,000 hectares across France, Ireland, Finland and Australia.
La Forêt de la Reine is located in Gerbéviller in the Meurthe et Moselle region. The deciduous forest comprises a growing stock of primarily oak trees (88%), alongside some beech (11%) and a small number of other species, centred around a large pond.
France is AXA IM Alts’ leading forestry market for deciduous tree species, representing 63% of the stock under management on behalf of clients in this market.
Laurent Lavergne, the global head of asset management and development at AXA IM Alts, said: “With the acquisition of La Forêt de la Reine we have taken advantage of the rare opportunity to acquire a well-located single and dense forest in close proximity to strong supportive infrastructure.
“Through the careful management of the Forêt de la Reine we can further expand AXA IM Alts’ decarbonisation strategy and biodiversity preservation, at the same time, allows our clients to benefit from a highly resilient asset class underpinned by strong demand for oak as a highly versatile renewable material.”
To read the digital edition of the latest IPE Real Assets magazine click here.