Opportunity in Biological Assets

Alternative investments in portfolio diversification

  • Institutional investors and European family offices show increasing interest towards biological assets as a part of their alternative investment strategy.
  • Timberlands and agriculture investments play a major role in many alternative investment strategegies.
  • Biological assets and especially timber is a non-correlating asset class with the capital market and economic cycles: trees are growing, no matter if the stock markets are gaining or losing value. This offers a particular hedge and portfolio diversification opportunity.
  • In forestry the investor can take advantage of timber price cycles by triggering wood sales on high cycle and prevent selling when wood prices are low.
  • In global context the population increase and economic growth are driving the increasing demand of wood based products.

The offering

  • Wyssen Biological Assets Ltd is offering profitable and sustainable alternative investment opportunities with appropriate risk/return ratio.
  • We operate in fields of forestry, tropical timberland plantations and fruit orchards.
  • The co‐operation with the investor starts from the investment concept presentation.
  • The business plan is tailor-made according investor’s specific preferences and requirements in terms of species, geography and scale.
  • Size of the investment varies generally between 10‐100 MEUR and it can be tailored according to specific requirements.
  • In project execution state‐of‐the art technologies will be implemented in all biological asset management in order to maximize the biological yields, value creation and financial return to the investors.
  • All investments will comply with the international and local sustainability criteria and they can be certified under suitable certification scheme (timberland under Forest Stewardship Council®, agriculture projects under GAP).

Merits of greenfield

  • In timberland and agriculture investments with best returns are achieved in greenfield projects with high capital appreciation.
  • Value creation in greenfield projects is genuine, as the the project fundamentally consists of creation of a total new biological asset.
  • In brownfield projects value creation possibilities are fewer and return expectative is lower, but often there are opportunities for immediate and steady cash distributions back to investors.
  • In forestry and agriculture the land and location for the project execution must be carefully selected; the land technically suitable for the planned crop, must be in relative proximity to the markets.

Land sourcing

  • Land needed for biological asset development can be either leased or purchased.
  • Land purchase allows to take advantage of the ever increasing land prices; however it requires normally a substantial investment up-front.
  • Land lease offers benefits from cashflow perspective as know up-front investment is required in the land.
  • Land lease offers flexibility at exit: there is no need to sell the land and exit takes place by terminating the biological asset at the end of the investment project cycle.

Project Cycle

  • Project Identification, Due Diligence & Business Plan

  • Land Sourcing

  • Crop Establishment

  • Production, Sales, Dividend Pay-Outs

  • Exit, Dividend Pay-Out