New Forests’ tropical Asia forest fund has acquired a majority interest in Burapha Agro-Forestry, a 6,000ha timber plantation forestry company based in Laos.
The transaction marks the third acquisition for the US$130m (€114m) Tropical Asia Forest Fund 2 (TAFF2) vehicle which is backed by Mirova’s sustainable land use strategy.
Burapha comprises planted forest combined with conservation areas, a plywood mill, and a voluntary carbon project focused on plantation afforestation, reforestation and revegetation.
In addition to Burapha, New Forests also owns the Mekong Timber Plantations company. With the latest investment, TAFF2 now has access to close to 85,000ha, with approximately 15,000ha of planted area.
Geoffrey Seeto, senior managing director, New Forests Asia said: “We are delighted to be growing our allocation to Laos through this investment in Burapha Agro-Forestry.
“Laos’ availability of land, combined with possessing highly conducive biological growth conditions, and being strategically located in near proximity to areas of significant wood deficit, makes it an attractive investment destination.”
Przemyslaw Pruszynski, CEO, Burapha Agro-Forestry said: “This is an exciting development for Burapha. We are extremely pleased to be partnering up with New Forests to continue on our mission to create a plantation base large enough for Laos to develop as a leading forest industry nation.
“Our objective is to support the long-term protection and reforestation and management of our land that can benefit current and future generations.”
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