MEAG has reached a significant milestone in its UK forestry program: on behalf of its clients, a mandate in the low triple-digit million-pound range has been committed, of which a substantial portion has now been invested in professionally managed forest assets, primarily in Scotland.
The mandate targets high-quality, productive forest assets. MEAG sees a sufficient pipeline of further attractive acquisition opportunities in a market that remains fragmented yet professionally managed. Individual transaction values, counterparties and client details are not disclosed.
The UK is one of the world’s largest net importers of timber: it produces only a small share of the timber it consumes and imports the majority. This structural undersupply creates a long-term need for productive forests and demonstrates the robust economic foundations of this asset class.
Scotland in particular offers above-average biological growth rates due to its climate, as well as a well-established forestry infrastructure. The forests are easily accessible, harvested timber can be cost-effectively transported and processed in nearby sawmills. Logistics are established, further processing is secured and sales channels are well diversified.
MEAG is building up the portfolio selectively, meaning that assets are acquired successively and consolidated over time into regional clusters. This plot-by-plot acquisition approach makes it possible to remain selective regarding land quality while gradually reaching a scale that enables efficient management. Locally, the forests are managed by established professional partners and service providers under MEAG’s supervision, with uniform standards for silviculture, harvesting, certification, and reporting across all areas. The geographic and species-related diversification helps to mitigate biological and market risks.
Philipp Weber, Investment Manager Forestry at MEAG, said: “We built this program on the conviction that UK forestry combines stable, long-term real asset returns with the responsible management of an essential natural resource. Having now reached significant scale and with a strong pipeline in place, we continue to see momentum in this market for our clients.”
Otto zur Lippe, Investment Manager Forestry at MEAG, added: “Acquiring forests is only the starting point. For institutional investors, what matters is turning them into reliable, long-term returns. We manage the portfolio with a balanced age and species structure and retain the flexibility to postpone harvesting when timber prices are weak, allowing the stands simply to continue growing until conditions improve. Together with professional local management and established sales channels, this turns productive forest assets into predictable returns for our clients.”
