Timberland Investment Resources manages in an eco-sustainable way a million hectares of forest. The fund aims to have a yearly yield of 8-10%
He may be defined as the “Italian Lord of the Forests”, because – along with his associates – he has invested $ 1.5 billion entirely in one million hectares of forest. The money used to buy forests and plantations, however, is not his, but belongs to his subscribers. Gian Paolo Potsios is the managing partner of Sgr Timberland Investment Resources, which invests exclusively in forests. Yesterday the company led by Gian Paolo Potsios unveiled a new fund, "Tir Europe Forestry Fund". The Fund's objective is the acquisition, management and protection of forest assets. Launched last August, it has already collected 75 of the $ 100 million target mainly among large Italian investors, including an insurance group, pension funds and family offices.
Only for institutional investors
The fund is closed; it has a duration of ten years and only targets subscriptions of institutional investors, who can afford to have such extended time horizons. It is a handsomely well-paid wait if the management will be able to actually ensure the envisaged yield: the target return is between 8 and 10% per year after fees, with an annual coupon of 3%. It is an amazing prospect in times of rates (and yields) stuck at zero. Threats appear limited as the forests will be selected in North America, in order to avoid the country risk. Mr Potsios argues that "Wood and forests also have the advantage of having a low correlation with market trends and the price of wood is not volatile." The asset management is environmentally sustainable: for every tree cut down, five new trees are replanted.
Source: Corriere della Sera