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AXA Investment Managers - Real Assets extends forestry portfolio with Finnish acquisition

AXA Investment Managers - Real Assets extends forestry portfolio with Finnish acquisition

Press Release
11 October 2017

AXA Investment Managers - Real Assets extends forestry portfolio with Finnish acquisition

AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), a global leader in real asset investments and the leading(1) real estate portfolio and asset manager in Europe, announces that it has agreed the acquisition, on behalf of its clients, of a c.14,100 hectare portfolio of 15 forests located in central Finland, from Taaleri, a Finnish financial company. The acquisition has been made on behalf of two clients, including ERAFP(2), the French Public Service Additional Pension Scheme, for whom this transaction is their first investment in the forestry sector.

Located in central Finland, in the same region as AXA IM - Real Assets’ existing forestry assets, the portfolio benefits from its close proximity to a number of saw and pulp mills. In addition, the area benefits from excellent infrastructure as well as low population levels; the land value is consequently predominantly driven by the amount, quality and density of wood in the estates.

The portfolio brings the total number of forestry assets in Finland, held by AXA IM - Real Assets on behalf of its clients, to 21 and the total forestry assets under management globally to over €180 million, totaling c. 35,000 hectares. This acquisition offers a good weighting of young and mature growing stands, which is important in providing flexibility in order to benefit from fluctuations in demand for different types of wood, while maintaining attractive annual revenues for the benefit of the clients.

AXA IM - Real Assets recognises the importance of sustainable investment both in terms of its ability to reduce environmental impact and as a source of long term revenue and value generation for the benefits of its clients. As a carbon positive asset class through its potential to capture and store carbon in wood and soil, forestry is a sustainable investment and as at the beginning of 2017, all forests managed by AXA IM - Real Assets are PEFC(3) or FSC(4) certified.

Christophe Lebrun, Senior Transactions Manager, Forestry, at AXA IM - Real Assets, commented: “The underlying drivers supporting European forestry investment remain supportive and this acquisition complements our international portfolio, which now totals 35,000 hectares, as part of our wider commitment to responsible investing.”

“Following our forestry acquisitions in France last year, the addition of this well-managed portfolio supports our strategy of diversifying clients’ European portfolios both by geography and through types of tree. This is particularly important so as to be able to benefit from peaks in demand and the provision of a steady and long-term income stream, as the returns available can be optimised by correctly timed harvesting and sales.”

– ENDS –

1 Source: INREV/ANREV Fund Manager Survey – May 2017 – in terms of assets under management
2 France's largest public pension fund, a 100% SRI institutional investor and one of the largest public pension funds in the world in terms of membership (source ERAFP)
3 Programme for the Endorsement of Forest Certification
4 Forest Stewardship Council

 

Press Contacts

AXA Investment Managers - Real Assets
Charline Coué, Media Relations Manager
Jocelyne Tamssom, Head of Communications
Tel +33 1 44 45 97 95
PressOfficeAXAIMRealAssets@axa-im.com

FTI Consulting Inc.
Richard Sunderland, Richard Gotla, Ellie Sweeney, Tom Gough
Tél: +44 20 3727 1000
AXAIMRealAssets@fticonsulting.com

Note to editors

AXA Investment Managers is an active, long-term, global, multi-asset investor focused on enabling more people to harness the power of investing to meeting their financial goals. By combining investment insight and innovation with robust risk monitoring, we have become one of the largest asset managers in Europe with ambitions to become the chosen investment partner of investors around the world. With approximately €735 billion(1) in assets under management as of end June 2017, AXA IM employs over 2,450 people based in 29 offices around the world.

AXA Investment Managers - Real Assets has over €71 billion in assets under management, including €54.5 billion in direct property & infrastructure and €13.6 billion in real asset finance as of end of June 2017(2). We offer a 360° approach to investing in real assets, which comprises opportunities in equity or debt, across different geographies and sectors, as well as via private or listed instruments. We are a global leader in real assets investment, the number one property portfolio and asset manager in Europe(3), and one of the largest worldwide. Our teams have been managing funds and mandates for over 30 years and comprise about 650 people in 15 offices that operate in over 20 countries around the world, which provide us with in-depth knowledge of countries, cities and sectors.

AXA Investment Managers is part of the AXA Group, a global leader in financial protection and wealth management.

Visit our websites:  www.axa-im.com / https://realassets.axa-im.com

Follow us on Twitter @AXAIM / @AXAIMRealAssets to get our latest information

 

1 Source: AXA IM unaudited data as of end of June 2017
2 Source: AXA IM - Real Assets’ unaudited data as of end of June 2017
3 Source: INREV/ANREV Fund Manager Survey – May 2017 in terms of assets under management

 

This document is aimed solely at the media and is for information purposes only. The opinions expressed here are the views of the author and do not constitute investment advice. This is not a recommendation to purchase, sell or subscribe to financial instruments, an offer to sell investment funds or an offer of financial services. This press release is as dated. They do not necessarily represent the views of any company within the AXA Investment Managers Group and may be subject to change without notice. This does not constitute a Financial Promotion as defined by applicable laws and regulation and is for information purposes only.  No financial decisions should be made on the basis of the information provided. Information regarding the background and personnel of AXA IM - Real Assets is provided for information purposes only.

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