Dutch civil service scheme ABP has secured a majority stake in a 70,000ha forest area in the US through local forestry company Molpus Woodland.
According to the €520bn pension scheme, the total project, which spans Alabama, Mississippi and Louisiana, is valued at $462m (€393m).
ABP said the acquisition is “one of the largest forest land transactions in the US in recent years”.
In recent years, ABP has increased its commitment to sustainable forestry, with investments totalling €1.3bn across the US, Australia, New Zealand and Chile.
Molpus Woodland said the assets are “a desirable investment opportunity because they are strategically located in areas with diverse and numerous pulpwood, plywood, and dimensional lumber facilities, strong mill proximity and growth potential”.
The acquired timberlands also present “potential diversified income opportunities such as solar projects, carbon capture and storage projects, recreation income, and pine straw harvesting,” the managing firm, which earns an annual fee from ABP, also said.
Part of the compensation for the manager is linked to achieving goals, such as improving biodiversity and restoring the forest ecosystem.
According to ABP, the newly acquired American forest area must remove 2m tonnes of CO2 from the air over the next 15 years.
ABP has already invested more in sustainable forestry in recent years, in the US, Australia and New Zealand and Chile.
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